American Empire

And you thought Greece had a problem?

Off the keyboard of Norrman Pagett

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Published on Collapse of Industrial Civilization on July 29, 2015

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Petroleum-Highway

Discuss this areticle at the Energy Table inside the Diner

End_of_MoreWhile we might think of money as supporting our economy, only energy can support the solvency of a nation, and only surplus energy can fulfill the aspirations of its rulers and the desires of its citizens. Until the advent of the industrial revolution, and in particular the universal availability of cheap oil, that energy could only come from territory that could produce sufficient food and other essentials for any level of civilized living. We might ‘demand’ that our leaders provide new hospitals, schools, roads and all the other things that make life comfortable, but without the necessary surplus energy to do it, it is impossible. No political posturing or promises or taxation can change that.

Most deny it, but we live in an energy economy, not a money economy. Without the continually increasing forward thrust of energy input, no economy can exist in the context that we have become used to.

Not just the Greeks, but those charged with governing every nation on Earth, have lost sight of the fundamental law of collective survival: if a nation doesn’t produce enough indigenous surplus energy to support the demands of its people, they must beg, buy, borrow or steal it from somewhere else, or face eventual collapse and starvation until their numbers reach a sustainable level.

Our lifestyle support system has been based on that premise since prehistory. Nomadic tribesmen, probably in the region of present day Iraq, had the bright idea of fixing borders around land, then growing their food supply instead of chasing after it. Fences and borders meant land could be owned and given value that could be measured in energy terms.

What we know as civilization is based on that simple concept. Land and its potential energy became capital, and our genetic forces ensured it was exploited to the full. Primitive farmers knew nothing of calorific values, or capitalism; only that too little food meant starvation, sufficient food averted famines, and surplus food offered prosperity. No one wanted to starve, few were content with sufficient, so the drive for surplus became relentless. It still is; only the scale has changed, it has become the profit motive in everything we do. Everybody wants a payrise, few refuse one. We are all capitalists, we differ only by a matter of scale.

Enclosed land needed strong control and the will to fight for it. Strength prevailed while weakness went under as resource competition ebbed and flowed across tribal territories. If land produced enough spare food and other necessary commodities, it was possible to equip and feed an army, and use it to occupy more territory. In that way collective energy could rapidly roll up small territories into a nation or an empire, create warlords and kings, and give credence to gods who were invariably on the winning side.

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Possession of land and what it produces is the hidden support of what we now understand as our economy and the viability of our infrastructure. Conflict makes that economy even more profitable and one that is built on power and aggression provides the potential for endless resource warfare, whether bloody or political. In 1941 Germany invaded Greece using the bloody version. In 2015 Greece is experiencing the political version. As a small weak country Greece lacks the resource strength to resist.

The more land that could be held and ruled, the more food-energy could be produced. Surplus energy that came in the form of meat and grain and timber was too big to carry around, so tokens of gold and silver became an accepted measure of energy value.

Different civilisations arose and used different monetary systems, but all broadly followed the pattern we are locked into now: those who controlled the land controlled the energy that supported the prevalent economy, whether primitive or sophisticated, warlike or peaceful. With sufficient surplus and a big enough labour force held in some kind of serfdom or dependency, tokenized energy could be diverted to pay for the construction of cities, castles and cathedrals. While the labour of men to build them, the allegiance of soldiers to guard them, and the faith of priests to pray over them might be bought with gold and silver, the system depended on a supply of food and basic commodities well above subsistence level, ultimately provided by the heat of the sun. That’s why the great early civilisations and empires began in the warm tropical and sub tropical regions of the world. And why Eskimos did not field armies, build cities, or inflict the hysteria of mass religion on themselves; they didn’t get enough sunshine to provide the energy resources.

That gave rise to the factors we still live with today: warm productive stable land sustains a bigger healthier population. People eat and procreate, need more sustenance, and demand that their leaders provide it, so the thrust of constant expansion is inevitable in order to feed them. This was as true for small farming settlements between the Tigris and the Euphrates, as it was for the Roman Empire. It was the force that drove the European industrial powers outwards to carve up Africa, the Americas and the Far East to give a privileged section of humanity a prosperity that has been unique in our history. Those of us who enjoy those privileges have lost sight of where they came from, and how fragile they are.

Consequently we are still locked into the same energy-hungry capitalist dynamic, only now we believe that money has not only been substituted for the energy that created it, it has replaced it. In most people’s minds, the illusion of money has supplanted tangible, hard resources. Energy is no longer regarded as necessary to sustain prosperity; we can print it, or better still, make it appear electronically.

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Who needs oil? Keynesian economics says that perpetual growth will come through passing bits of coloured paper or plastic from hand to hand at an ever-faster rate.

The leaders of every advanced industrial nation are driven to promise this kind of ‘growth’ to their people, for no better reason than because there has always been growth, so our future will be growth driven too; they and we know no other way. We believe the lie that money itself has taken on an intrinsic worth of its own.

The Greeks fiddled their accounts, joined the EU and accepted the common currency of the Euro and the collective certainty of the money-driven nature of growth, at a time when oil was $25 a barrel. With oil so cheap, any concern about indigenous energy sources was irrelevant. They had a world class (oil dependent) shipbuilding and sea transport industry, and (oil dependent) tourism was booming. In the late 90s, when oil had fallen to $18 a barrel, they borrowed $11 billion to buy still more energy to burn in order to stage the 2004 Olympic games. Greek prosperity depended on infinite supplies of hydrocarbon fuel, but they followed the common belief in infinite money.

When the price of oil peaked in 2008, the crash was inevitable. The certainty that money represented wealth was destroyed by the price of oil, but they borrowed billions more to try to prove it hadn’t. Any reason was better than reality: that you can’t run a cheap energy economy on expensive energy.

The latest clutch of Greek politicos got themselves voted into office because they told the Greek people what they wanted to hear: that prosperity could be voted into office, as if the availability of indigenous energy within their borders was a matter of political choice. Alexis Tsipras believed the Keynesian fantasy and convinced himself that borrowed money put into endless circulation will generate wealth and ‘growth’. $11 billion spent on the now derelict Olympic stadium should have served as a warning, but it didn’t.

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More ‘bailouts’ have been agreed; the Greeks will now settle back into their soporific lifestyle and the headline writers will find something more newsworthy. But the hammer of reality has only been lifted temporarily from the anvil of their economy. In a year or so, when the Greeks have spent their latest loan, it will crash down again, harder.

The Greeks are not money-bankrupt, they are energy-bankrupt.

But so is every other nation, to a greater or lesser degree. Saudi Arabia is in a worse state of energy bankruptcy than the poverty stricken Greeks, they just don’t know it yet.

A century ago, Greece had a population of around 5 million, and had only partially freed itself from control by the Ottoman Empire. Despite wars, revolution, hyperinflation and foreign occupation during the 20th century, it remained poor but largely self sufficient as a pastoral country. During that period, the population doubled, due in a large extent to reclaiming Turkish held territories in the early 20th century. In a worst-case scenario, if Greece defaults on its debts, and drops out of the EU and the European currency, 11 million Greeks will be left to feed themselves at a very basic level. They will have no choice but to fall back on a more primitive lifestyle, forgo the luxuries bought by oil consumption and live on the energy sources within their own borders. When they do that, their energy bankruptcy will disappear.

100 years ago, Arabia had a population of 1.5 million, and was also a region of the Ottoman Empire. The term Saudi had not been prefixed to it and the Gulf States did not exist. Their people were basically nomadic, with no concept of national identity, or civilization approaching the Greek level. Though under nominal control of the Turks, they were effectively protected by their hostile desert. Living was primitive, but like the Greeks, self sufficient on their terms.

Then in 1938 oil was found in Arabia, now the population is over 30 million. The current excesses of Saudi Arabia are too familiar to need recounting here. We’ve all watched the Saudis use their oil to build unsustainable cities in deserts, where previously there had been none. They have used their oil to suck finite water out of aquifers and desalinate seawater to maintain the fantasy of endless prosperity. They buy in every conceivable luxury and try to outdo each other with meaningless towers of vanity that they see as expressions of wealth and status. They build because they can, believing the economic nonsense that spending energy-based tokens, i.e. money, creates profit and wealth. Just like the vanity of the Greek Olympic venues, the glittering towers of Riyadh and Mecca and Jeddah are seen as a source of commercial prosperity that will deliver and provide cashflow long after the oilflow has dried up.

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As the Greeks discovered when the energy flow stopped going into their arenas, they began to disintegrate. Without constant energy input, money embedded in concrete, glass and steel can only show a return if more money (energy) is constantly added to resist the ultimate certainty of entropy. No one has pointed out that while Saudi towers may be designed to last 100 years, the oil-energy that supports them will run out in less than 30, maybe as few as 20 years. (It has been suggested that Saudi might become an oil importer by 2030, though exactly where the imported oil will come from, or how it might be paid for, is not clear). Then the towers will start to fall apart just as the Saudi economy will fall apart because the oil-energy they use to fuel such vanities is borrowed from their own future. And they will have no means of repaying it; their creditors are not foreign bankers, but their own young and dispossessed. They will violently reject the certainty of a life as goat herders and camel traders if only for the reason that they wouldn’t know how.

Just like the Greeks they will demand that the lifestyle they know carries on unimpeded by the reality of energy shortage. They will try to borrow money to maintain it, with the same result. Bankruptcy on the Saudi scale will make the Greek version look like a small bank overdraft. Unlike Greece, the desert is hostile to human life at the current Saudi density, and needs constant input of food, water and air conditioning to survive 50o C summer heat.

11 million Greeks can feed themselves from their own land. 30 or 40 million Saudis are going to have to face the brutal truth that they can’t. The Saudis currently produce about 10 million barrels of oil a day, and they have to use one third of that to keep themselves alive and in the luxury they think they need. They have created an artificial existence entirely dependent on trading oil for food, and face a future of actual starvation, because there will not be sufficient surplus food energy available anywhere in the world to prevent it once the oil has gone. At current rates of growth their population is projected to reach 60 million by 2050 so between now and then a sudden and catastrophic end to the oil-excess is certain. That life-subsidy of one barrel of oil in three will rapidly disappear, with Saudi using constantly depleting oil to buy food at constantly increasing prices in a race to stay alive. Unemployable young men face a non-future where their luxurious privileges are stripped away by forces beyond their control and understanding. With the oilwells sucked dry, the US fleet will sail away from Bahrain, and discontent will manifest itself into riot. In perhaps only 10 or 15 years, Saudi Arabia as a viable nation will not have sufficient indigenous energy to prevent collapse. There will be nowhere to buy, beg, borrow or steal it from, and no oil for export. Which is where Greece is right now.

Since the oilwealth kicked in and the population exploded, Saudi now has a youth bulge in their population. 37% are under 14, 51% are under 25. Already the unemployment rate in the 16 to 29 age range is reported as 29%, possibly much higher. Of those with graduate level jobs, most have been absorbed by the public sector, with Shias being actively discriminated against by the dominant Sunnis. Jobs requiring technical skills are filled by foreign workers. Effectively this means that virtually all wages and unemployment benefits are paid out of oil revenues. This is where violent unrest will come from when the oil flow begins to dry up. Already Saudi has paid out $billions in freebies to pacify their unemployable young men, while maintaining the unreality of gasoline at 16c a liter, effectively using oil to subsidise itself.

With its oil wealth diminishing, Saudi is a ticking time bomb, split by religious factions and sectarianism, confined by repression at a medieval level and surrounded by religious zealots who see infidel industry being supported by the holy oil that rightfully belongs in the land of the prophet. Compared to that, Greece is an oasis of tranquility.

Masked Sunni gunmen pose for a photo during a patrol outside the city of Falluja April 28, 2014. Iraqi soldiers say they have been trapped in and around the western city of Ramadi. They say they have run low on tank shells, lack aerial cover and armoured vehicles, and have been hit by high casualties and desertion rates. In March and April, ISIL seized a dam in Fallujah, flooded farmland on the outskirts of Baghdad in Abu Ghraib, and drained offshoots of the Euphrates river; the Iraqi government evacuated the main prison for Sunni detainees in Abu Ghraib because of the ongoing clashes; and militants, thought to be from ISIL, bombed the country's oil pipeline to Turkey.  REUTERS/Stringer (IRAQ - Tags: CIVIL UNREST POLITICS CONFLICT) - RTR3MZIX

For a different energy/economy collapse scenario, move on to China.

There, energy is being locked into unusable real estate on a truly colossal scale, concentrated on building cities in places where there are no people to live in them. City after city is being constructed right across the country, creating an illusion of ‘Gross Domestic Product’, where officials can only achieve recognition by the rate at which infrastructure is built. A building without people in it is disregarded as irrelevant. 6 million people enter the Chinese job market every year. Construction creates employment, GDP means everything and urbanization targets must be reached.

Employment is the biggest thing for well-being. The government must not slacken on this for one moment … For us, stable growth is mainly for the sake of maintaining employment. Prime Minister Li Keqiang, November 2013

If an apartment block or shopping mall costs $10 million to build, then that is the ‘value’ of the building on the ledger of national prosperity. If it stands empty for years, the ‘value’ is somehow retained. In China, the motivation is different to that in Saudi Arabia or Greece, but there is the same determination to spend money on projects that are intended to deliver infinite commercial prosperity based on the imagined value of the building itself.

They are building dozens of fully functioning cities on the assumption that workers will show up to fill them. But of course those workers will need food as well as ongoing and permanent employment, which isn’t going to be there, so the ghost cities will not have the means to exist. The cities are where people are supposed to live, the countryside is where food is supposed to be produced.

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But both need vast quantities of oil to function. At the current rate of growth of around 8% a year, by 2035 China will (in theory) be using the same volume of oil currently consumed in the world now. That won’t happen of course, because the world oil supply is the same for China as it is for Saudi Arabia, twenty years, maybe much less, no matter how much they buy in and hoard. The Chinese desperation for oil will become critical, just as Saudi exports begin to become unavailable. As supply tightens, so conflict over it will increase, thus restricting supply still further until conflict brings oil production to a virtual standstill. But the Chinese ‘ghost cities’, just like Saudi towers, are intended to last a hundred years.

The figures don’t add up; it’s arithmetic too frightening for most to contemplate. China is dependent on its ever increasing production system to generate new jobs. That drives suicidal pollution and insatiable resource consumption because like capitalist governments everywhere, growth must be prioritized over the environment. Growth without oil is impossible so while the ghost cities of China have a value according to government statistics, they produce nothing; and until they do, will have no value at all. Even if some workers do manage to occupy parts of the ghost cities, without oil there won’t be sufficient power to keep them functioning. Under the inflexible second law of thermodynamics, without constant energy input, entropy takes over and buildings begin to deteriorate from the moment they are completed.

Detroit has followed a different path to bankruptcy.

Detroit Ruins

Ruins at the abandoned Packard Automotive Plant (September 4, 2013 in Detroit, Michigan) serve as canvas for graffiti artists. 78,000 abandoned buildings are strewn across Detroit’s 142 square miles.

Whatever the causes of Detroit’s demise, and there can be said to be many, the overall picture is one of declining energy input. People moved out and no longer spent money on making the city a viable entity. The car plants closed, removing the need for people to be there, the loss of inhabitants removed their collective energy, and the city began to fall apart. The result is unequivocal: remove energy input, and any artifice declines, decays and collapses at an accelerating rate.

Detroit is a bankrupt microcosm of the USA: a nation of 330 million people built entirely on the capitalist system needing infinite expansion, drawing on finite energy borrowed from a future that is unsustainable.

America differs little from the disaster scenarios of Saudi Arabia and China. Finite water is being relentlessly pumped out of depleting aquifers, and finite hydrocarbon is being turned into fertilizer to produce food while cities are forced to grow in hostile deserts. The products of Detroit and cheap fuel allowed suburban sprawl to spread 50 miles out from city hubs across the nation because food and water could be delivered, sewage disposed of and climate altered to personal taste. Declining oil supply will render suburbia hostile to modern living as we know it; the local environment may look different, but the effect on human existence will be the same as the excesses of Saudi or China.

Saudi Arabia, China and America are examples of what our future is going to be. But every nation is promising itself a prosperous future while borrowing from it at an ever-increasing rate, making certain that it cannot exist.

The input of oil into national economics has not exempted humanity from the laws of physics. The trappings of civilization have not altered our fundamental rule of existence: whether your station in life is humble or exalted, if you don’t produce food from the earth on a personal basis, your life depends on someone, no matter how many stages removed, converting sunlight into food on your behalf. Not only that, it must be sold at a price you can afford within a stable environment. Essentially, civilization is just that. Remove it and most will starve while those with enough personal resilience will have no option but to revert to hunter gathering or even scavenging, because what we call civilization is as fragile as the oil it sits on. For the millions of homeless people living on the streets in our ‘civilised’ cities, civilization is over. For them there is little hope of a return to prosperity, with a good job, a warm home and security.

History shows that a radically destabilized environment results in war, famine, disease and death. Any one of those four can and will exacerbate the other three.

Our civilization is becoming increasingly unstable, and right now the four horsemen are getting restless.

In one hundred years time, would you prefer to be living in the United States, China, Saudi Arabia…..or Greece?

BREAD, CIRCUSES & BOMBS – DECLINE OF THE AMERICAN EMPIRE – PART TWO

Off the keyboard of Jim Quinn

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Published on The Burning Platform on November 9, 2014

Discuss this article at the History Table inside the Diner

In Part One of this article I discussed the similarities between the Roman Empire and the American Empire at a high level. In this article I’ll delve into some specific similarities and rhymes between the fall of the Roman Empire and our modern day empire of debt, decay and decline. I’ll address our expansive level of bread and circuses and how defects in our human nature lead to people willingly sacrificing their liberty for promises of safety and security. All empires decline due to the same human failings and ours is no exception. If anything, ours will be far more spectacular and rapid due to our extreme level of hubris, arrogance, willful ignorance and warlike preference for dealing with foreign powers.

It seems there were a few visionary thinkers in the late 1950s who foresaw the dire course our former Republic was setting. Their writings were a prophecy and a warning. There was still time to change course and avoid the pitfalls that led to the Roman Empire collapse. In Brave New World Revisited, Aldous Huxley warned against allowing a few amoral men using propaganda, scientific advancements, technology, brainwashing, and economics to control and manipulate a willfully ignorant populace into a dystopian dictatorship. The Soviet and Chinese dictatorships of the late 1950s are long gone, but Huxley foresaw how modern propaganda techniques would be used by the state to drown the masses in a sea of triviality, irrelevance, and consumerism.

“In their propaganda today’s dictators rely for the most part on repetition, suppression and rationaliza­tion — the repetition of catchwords which they wish to be accepted as true, the suppression of facts which they wish to be ignored, the arousal and rationaliza­tion of passions which may be used in the interests of the Party or the State. As the art and science of manip­ulation come to be better understood, the dictators of the future will doubtless learn to combine these tech­niques with the non-stop distractions which, in the West, are now threatening to drown in a sea of irrele­vance the rational propaganda essential to the mainten­ance of individual liberty and the survival of demo­cratic institutions.”

Another man of vision was President Dwight D. Eisenhower. As someone who understood the military industrial complex and the world of politics and power, he knew the danger of allowing the arms industry to dictate the foreign policy of the country. Maintaining a military empire bankrupted Rome and it is bankrupting the American empire. Eisenhower’s warning was unheeded.

“We have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations. This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence — economic, political, even spiritual — is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present and is gravely to be regarded.”

When I was researching the similarities between the fall of the Roman Empire and our American Empire fall in progress, I stumbled across an essay written in 1956 by Ben Moreell called Of Bread and Circuses  

Toxic Bread, iGadgets, Circuses, & Zoloft

“The evil was not in bread and circuses, per se, but in the willingness of the people to sell their rights as free men for full bellies and the excitement of the games which would serve to distract them from the other human hungers which bread and circuses can never appease. The moral decay of the people was not caused by the doles and the games. These merely provided a measure of their degradation. Things that were originally good had become perverted and, as Shakespeare reminds us, ‘Lilies that fester smell far worse than weeds.’”Ben Moreell – 1956 – Of Bread and Circuses

There is nothing inherently evil about food, iPhones, professional sports, television, computers, music or medicine. Human beings need food to sustain them, entertainment to provide relaxation and diversion from their daily labors, and medicine to alleviate illness and prolong their lives. Only when the people allow themselves to be lured into servitude by malevolent purveyors of bread and circuses does the perversion of seemingly harmless things begin to fester and overwhelm a nation with the fetid stench of decay and decadence. The moral degeneration of the American populace, like the Roman people before them, happened slowly over time as they sold their liberty, freedom, and self-respect for full bellies, an endless array of modern day distractions, and promises from their highly educated rulers they would be taken care of and protected from all threats to their well-being, whether foreign, domestic, physical, mental, or social.

It did not happen all at once. It happened gradually over time. We allowed the weaker facets of our human nature to succumb to the pleasurable promises of a minority of power seeking manipulative men who always attempt to control and influence the majority because they believe they are wiser and deserving of riches, glory and supremacy. The greediest, most arrogant, ambitious and well educated amongst us tend to rise to the top in all societies. As Ben Franklin stated, only a virtuous people can keep sociopaths from gaining control of our political, economic and financial systems and perverting a republic built upon a foundation of free markets, liberty, and self-sufficiency.

“Only a virtuous people are capable of freedom. As nations become more corrupt and vicious, they have more need of masters.”Benjamin Franklin

Historian Tacitus noted, as Rome became more and more corrupt, the number of laws grew rapidly. The Roman aristocracy, through corruption and thievery achieved lofty status in Roman society. Senators and wealthy knights engaged in extensive practices of conspicuous consumption, creating palatial town houses and monumental “art villas” to demonstrate their high rank in society. The peasants sank into poverty, while being satiated with bread and circuses. And it was all done legally, just as it is being done legally today by our beloved aristocracy and their minions.

“The more corrupt the state, the more numerous the laws.” – Tacitus – The Annals of Imperial Rome

Has the proliferation of laws, rules, and regulations over the last century made us freer, safer and less corrupt?

The virtue of the American people has dissipated rapidly over the last century through their willful ignorance, laziness, apathy, vanity, greed and covetousness, while the true ruling power has consciously and intelligently manipulated the masses without them being aware they were being molded, controlled, dominated and influenced by Ivy League educated men of no conscious, empathy, or sense of decency. The paragraph below, written in 1928 by Edward Bernays, reveals the true nature of our “democracy” and our real masters:

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays – Propaganda

Bernays and his disciples believed the American citizenry nothing more than a herd of irrational animals that needed to be led by enlightened despots like him and other highly educated wealthy men who knew what was best in a democratic society. The term propaganda developed negative connotations after some Germans used it so effectively during the 1930s, so modern American despots changed the term to public relations. It’s all about the message. As media tools have become more technologically advanced and the study of human psychology perfected, the members of the invisible government have achieved their goal of governing, molding, and pulling the wires that control the public mind in a way that enriches them and their benefactors while satisfying the base needs of the masses and keeping them distracted with trivialities, technological wonders, and a myriad of bogeyman threats. These men have contempt for the common man. They have contempt for the U.S. Constitution. They have contempt for free markets. And they have control of our country.

Needs, Wants & Desires

The concept of bread and circuses ties closely to Maslow’s Hierarchy of Needs theory. The ruling class realizes the masses must be kept fed, clothed and housed or revolution would ensue. The human needs documented by Maslow were satisfied or not satisfied by humans prior to the 20th century. Once the ruling class gained control of the monetary system through their jurisdiction over the Federal Reserve and the fiscal system through their manipulation of taxes and spending, they were able to bribe the masses with their own money. The rise of the welfare state has not reduced poverty or boosted the standard of living of the poor. It has enslaved tens of millions at the basic human needs level. Once those in power had successfully bribed the masses with bread (SNAP), shelter (subsidized housing), subsistence (unemployment compensation & welfare), security (Social Security) and safety (Medicare, Medicaid), it was only necessary to keep them distracted with circuses to efficiently teach them to love their servitude.

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.” – Aldous Huxley – Brave New World

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The invisible governing authorities don’t want the masses to actually satisfy their psychological and self-fulfillment needs. The last thing they want is an educated, aware, critical thinking, independent, courageous, self-reliant, civic minded populace questioning the motivations of their keepers. This is where the corporate fascists who control the mass media propaganda machine and the sickcare industrial complex have combined forces to create a painless concentration camp of prisoners enjoying their servitude and happy to sacrifice their liberty for perceived safety. An uneducated, obese, sickly, depressed, overly-medicated populace is not a threat to the ruling class. They have been conditioned and pharmacologically sedated to such an extent the governing class feels indestructible, displaying arrogance and hubris in dangerous doses.

“There will be in the next generation or so a pharmacological method of making people love their servitude and producing dictatorship without tears, so to speak, producing a kind of painless concentration camp for entire societies so that people will in fact have their liberties taken away from them but will rather enjoy it.” – Aldous Huxley

The concept of voluntary servitude has been a constant theme across the ages as most people want to be led, told what to do, and will not question or contest those in authority. Liberty and freedom require effort, sacrifice, honor and a people with a strong moral character. The Roman people succumbed to tyranny by abandoning their liberty to despots for a full belly and grand spectacles. The American people have succumbed to modern day banker, billionaire and politician oligarchs for a belly full of toxic corporate processed food, cable HDTV with 600 stations, iGadgets, a never ending supply of cheap Chinese produced crap at big box retail stores, Facebook, Twitter, 24 hour drive thru Dunkin Donuts joints, and an endless array of professional sporting events, all paid for with an infinite supply of cheap consumer debt from the Wall Street fraud machine. We live in a warfare/welfare surveillance state built on a foundation of debt, consumerism, and delusion, with no tears. We’ve learned to love our servitude.

French philosopher Etienne de La Boetie captured the degradation of the once noble Roman people five centuries ago, and his words ring true today as the American people have foolishly relinquished their liberty to a corporate aristocracy that has bankrupted the nation, debased the currency, pillaged the middle class and set in motion an irreversible decline of the empire.

“Plays, farces, spectacles, gladiators, strange beasts, medals, pictures, and other such opiates, these were for ancient peoples the bait toward slavery, the price of their liberty, the instruments of tyranny. By these practices and enticements the ancient dictators so successfully lulled their subjects under the yoke, that the stupefied peoples, fascinated by the pastimes and vain pleasures flashed before their eyes, learned subservience as naively, but not so creditably, as little children learn to read by looking at bright picture books. Roman tyrants invented a further refinement. They often provided the city wards with feasts to cajole the rabble, always more readily tempted by the pleasure of eating than by anything else.

The most intelligent and understanding amongst them would not have quit his soup bowl to recover the liberty of the Republic of Plato. Tyrants would distribute largess, a bushel of wheat, a gallon of wine, and a sesterce: and then everybody would shamelessly cry, ‘Long live the King!’ The fools did not realize that they were merely recovering a portion of their own property, and that their ruler could not have given them what they were receiving without having first taken it from them.” – Etienne de La Boétie – Discourse on Voluntary Servitude – 1548

We are fools to not realize the governing authorities who benevolently distribute bread and entitlements to the masses have already taken the money at gunpoint from the people, while syphoning off their cut, favoring their courtesans and taking away our liberties and freedoms. H.L. Mencken, who could match de La Boetie in contempt for the ignorant masses and corrupt politicians, understood our democracy was destined for the trash heap of history.

Democracy is a pathetic belief in the collective wisdom of individual ignorance. No one in this world, so far as I know—and I have researched the records for years, and employed agents to help me—has ever lost money by underestimating the intelligence of the great masses of the plain people. Nor has anyone ever lost public office thereby.” – H.L. Mencken – Notes on Democracy

In Part Three of this article I will address how the creation of the Federal Reserve has led to a century of currency debasement, mindless consumption and endless warfare, while impoverishing the masses and setting in motion the dynamics of empire collapse.

Bread, Circuses & Bombs

Off the keyboard of Jim Quinn

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Published on The Burning Platform on September 22, 2014

fall-of-rome

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BREAD, CIRCUSES & BOMBS – DECLINE OF THE AMERICAN EMPIRE

“Already long ago, from when we sold our vote to no man, the People have abdicated our duties; for the People who once upon a time handed out military command, high civil office, legions — everything, now restrains itself and anxiously hopes for just two things: Bread and Circuses.”

Juvenal – Satire (100 A.D.)

 

Roman satirist and poet Juvenal was displaying contempt for a degraded Roman citizenry that had shunned civic responsibility, shirked their duties of citizenship within a republic, and had chosen to sell their votes to feckless politicians for assurances of bread and circuses. Rather than govern according to noble principles based upon reason, striving for public policies that led to long term sustainability and benefitting the majority of citizens, politicians chose superficial displays and appeasing the masses utilizing the lowest common denominator of “free” food and bountiful spectacles, pageants, and ceremonies in order to retain power.

The Roman Empire’s decline stretched across centuries as the gradual loss of civic virtue among its citizenry allowed demagogues to gain power and barbarians to eventually overrun the weakened empire. While the peasants were distracted with shallow exhibitions of palliative pleasures, those in power were debasing the currency, enriching themselves, and living pampered lives of luxury. The Roman leaders bought public approval and support, not through exemplary public service, but through diversion, distraction, and the satisfaction of base immediate needs and desires of the populace. Satisfying the crude motivations of the ignorant peasants (cheap food and entertainment) is how Roman politicians bought votes and retained power. Free wheat, circus games, and feeding Christians to lions kept the commoners from focusing on politicians pillaging and wasting the empire’s wealth.

History may not repeat exactly because technology, resource discoveries, and political dynamics change the nature of society, but it does rhyme because the human foibles of greed, lust for power, arrogance, and desire for conquest do not vary across the ages. The corruption, arrogance, hubris, currency debasement, materialism, imperialism, and civic decay that led to the ultimate downfall of the Roman Empire is being repeated on an even far greater scale today as the American Empire flames out after only two centuries. The pillars of western society are crumbling under the sustained pressure of an immense mountain of debt, created by crooked bankers and utilized by corrupt politicians to sustain and expand their welfare/warfare state. Recklessness, myopia, greed, willful ignorance, and selfish disregard for unborn generations are the earmarks of decline in this modern day empire of debt, delusion and decay.

“Armaments, universal debt, and planned obsolescence – those are the three pillars of Western prosperity. If war, waste, and moneylenders were abolished, you’d collapse. And while you people are over-consuming the rest of the world sinks more and more deeply into chronic disaster.”Aldous Huxley – Island

Rome was eight and a half centuries old when Juvenal scornfully described the degenerative spiral of the Roman populace. Still, the Western Empire lasted another three centuries before finally succumbing to the Visigoths and Vandals. The far slower pace of history and lack of other equally matched competing nation states allowed Rome to exist for centuries beyond its Pax Romana period of unprecedented political stability and prosperity, which lasted for two centuries. Prior to becoming an empire, the Roman Republic was a network of towns left to rule themselves with varying degrees of independence from the Roman Senate and provinces administered by military commanders. It was ruled, not by Emperors, but by annually elected magistrates known as Roman Consuls. The Roman citizens were a proud people who had a strong sense of civic duty and made government work for the people.

During the 1st century B.C. Rome suffered a long series of internal conflicts, conspiracies and civil wars, while greatly extending their imperial power beyond Italy through military conquest. After the assassination of Julius Caesar and the ascension of Augustus to emperor in 27 BC, after a century of civil wars, Rome experienced an unprecedented period of peace and prosperity. During this era, the solidity of the Empire was furthered by a degree of societal stability and economic prosperity. But it didn’t last. The successors to Augustus contributed to the progressive ruination of the empire. The repugnant reigns of Tiberius, Caligula, Claudius, and Nero reflected the true nature of the Roman people, who had relinquished their sovereignty to government administrators to whom they had granted absolute powers, in return for food and entertainment. It was the beginning of the end.

The American Republic began as a loose confederation of states who ruled themselves, with little or no direction from a central authority. The Articles of Confederation, ratified in 1781 by all 13 States, limited the powers of the central government. The Confederation Congress could make decisions, but lacked enforcement powers. Implementation of most decisions, including modifications to the Articles, required unanimous approval of all thirteen state legislatures. After winning the war for independence from England, the U.S. Constitution, which shifted power to a central authority, was ratified in 1789. The Bill of Rights, the first ten amendments to the Constitution, was passed in 1791 with the purpose of protecting individual liberties and insuring justice for all. Their function was to safeguard the citizens from an authoritarian federal government. These imperfect documents would benefit and protect the rights of the American people only if applied by moral, just, incorruptible, noble, honorable leaders and enforced by an educated, concerned, vigilant citizenry.

As with the Roman Empire, the quality of leadership has rapidly deteriorated over the last two centuries and now wallows at disgustingly low levels. These leaders are a reflection of a people who have abandoned their desire for knowledge, responsibility for their lives, work ethic, belief in freedom and the U.S. Constitution. The Juvenal of our times was H.L. Mencken who aptly and scornfully described the citizenry in 1920 as an ignorant mob who would eventually elect a downright moron to the presidency. He was right.

“The larger the mob, the harder the test. In small areas, before small electorates, a first-rate man occasionally fights his way through, carrying even the mob with him by force of his personality. But when the field is nationwide, and the fight must be waged chiefly at second and third hand, and the force of personality cannot so readily make itself felt, then all the odds are on the man who is, intrinsically, the most devious and mediocre—the man who can most easily adeptly disperse the notion that his mind is a virtual vacuum.

The Presidency tends, year by year, to go to such men. As democracy is perfected, the office represents, more and more closely, the inner soul of the people. We move toward a lofty ideal. On some great and glorious day the plain folks of the land will reach their heart’s desire at last, and the White House will be adorned by a downright moron.” H.L. Mencken

A Republic was formed 225 years ago, as opposed to a monarchy, by men of good intentions. They weren’t perfect, but their goals for the new nation were honorable and decent. Ben Franklin had his doubts regarding whether we could keep a republic. He had good reason to doubt the long-term sustainability of this experiment. Freedom is not something bestowed on us by men of higher caste. We are born into this world free, with the liberty to live our lives as we see fit, the opportunity to educate oneself and the freedom to succeed as far as our capabilities and efforts allow. Only a self-reliant, virtuous, moral, civic minded people are capable of enjoying the fruits of freedom. Once corruption, self-interest, greed, and dependency upon government bureaucrats for sustenance become prevalent, the populace seeks masters who promise safety and security in return for sacrificing essential liberty and basic freedoms.

The country has defeated foreign invaders, withstood financial calamities, endured a bloody civil war, benefitted immensely from the discovery of oil under its soil, became an industrial power, fought on the winning side of two world wars, and since 1946 has become the greatest imperial empire since Rome fell to the barbarians. Over the course of our 225 year journey there has been a gradual relinquishment of the citizens’ sovereignty and autonomy to an ever more overbearing central government. Lincoln’s unprecedented expansion of Federal government authority during the Civil War marked a turning point, as state and local rights became subservient to an all-powerful central authority. Individual liberty has been surrendered and freedoms forfeited over a decades long insidious regression of a once courageous, independent, self-sufficient citizenry into a mob of cowering, willfully ignorant dependents of the deep state.

From the inception of the country there has been a constant battle between the banking interests and the common people. Bankers have used fraudulent fractional reserve banking to speculate for their own benefit, made risky loans, and created every financial crisis in the country’s history. The profits from excessive risk taking are retained by the bankers. The inevitable losses are borne by taxpayers with the excuse that the financial system must be saved and preserved. The storyline never changes. The beginning of the end of the American Empire can be pinpointed to the year 1913, only 124 years after its inception. Private banking interests captured the monetary system of the empire with the secretive creation of the Federal Reserve. The power of the central state was solidified with the implementation of the personal income tax, allowing politicians to bribe their constituents with modern day “bread and circuses”, paid for with money taken at gunpoint from them by the central state. We are now nothing but the hollowed out shell of a once noble Republic.

A century of central banking and heavy taxation of the people by bought off politician puppets has coincided with a century of war, depressions, currency debasement, overconsumption, obscene levels of consumer debt, trillions of excessive debt financed government spending, hundreds of trillions in unfunded entitlement liabilities, and a persistent decline in standard of living for the masses due to Federal Reserve manufactured inflation. We have failed to heed the lessons of history. We have repeated the blunders committed by the Romans.

The American Empire will not be murdered by an external force because it is too busy committing suicide. The moneyed interests, corporate oligarchs and their hand-picked politician front men see themselves as conquering heroes. Their colossal hubris and arrogance is only matched by the ignorance, gullibility, quivering fear of bogeymen, and susceptibility to propaganda of the general populace. The Wall Street bankers and feckless politicians are not gods, they are only men. Death is the great equalizer for emperors and peasants alike. The only thing that remains is your legacy and whether you positively impacted the world. It can be unequivocally stated that those in power today are leaving a legacy of despair, destruction, and debt.

Empires are born and empires die. The American Empire will not be sustained for eight centuries, as the swiftness of modern civilization, nuclear proliferation, religious zealotry, and sociopathic leadership ensures we will flame out in a blaze of glory before reaching our third century. The spirit of independence, idealism, self-reliance, entrepreneurship, knowledge seeking, advancement, and goodwill towards our fellow citizens that marked the height of our fledgling country has succumbed to a malaise of government dependency, cynicism, living on the dole, financial Ponzi schemes, willful ignorance, materialism, delusion, and myopic self-interest. The moral decline of the American populace has been reflected in the deteriorating quality of leaders we have chosen over the last century. Prosperity was taken for granted and no longer earned. We abdicated our civic responsibility to corrupt financiers and power seeking politicians. As time has passed, the ruling elite have grown ever more powerful and wealthy, at the expense of the peasantry. These sociopaths see themselves as god-like emperors, on par with the vilest of the Roman emperors.

Historians will mark 1980 as another turning point, when the nation capitulated to the financiers and ceded control of our destiny to Wall Street bankers, the military industrial complex, and globalist billionaires. The final deformation from a productive society built upon savings, capital investment, and goods production to a borrowing, gambling, and consumption society built upon debt and profiteering by powerful corporate and banking interests had commenced. The peak of this warfare/welfare state insanity was reached in 2000 and the road to decline and decay is now littered with the figurative corpses of a gutted middle class and the literal corpses of men, women and children across the globe, killed during our never ending imperial conquests. The ruling elite sense the futility and foolishness of their folly, but their insatiable appetite for wealth, power, triumph and glory blind them to the destructive consequences of their actions upon the nation and their fellow man. Power and dominion over others is a powerful aphrodisiac for our current day emperors and self-preservation at all costs is their mantra.

While they bask in their perceived triumph and glory, achieved through rigging the financial and political systems in their favor, they should heed the faint whisper in their ear that all glory is fleeting.

“For over a thousand years Roman conquerors returning from the wars enjoyed the honor of triumph, a tumultuous parade. In the procession came trumpeteers, musicians and strange animals from conquered territories, together with carts laden with treasure and captured armaments. The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting.” George S. Patton, Jr.

The decline of the Roman Empire can be attributed to a number of supportable hypotheses, which have been documented by historians over time. They include:

  • Perpetual warfare depleted the treasury and wasted the manhood of the empire. The use of mercenary armies eventually led to the sacking of Rome by the very armies they had employed.
  • Military overexpansion and spending resulted in resources being diverted from technological advancement, maintenance of the civil infrastructure, and worthwhile investments to support economic growth.
  • Excessive welfare spending, oppressive taxation and currency debasement widened the gap between rich and poor, resulting in discontent, mistrust and rebellion.
  • The emergence of an all-powerful centralized authoritarian government ruling by mandate, racked by corruption, and kept in power by bribing its subjects with promises of bread and circuses.
  • Emperors and Senators became oligarchs and their conspicuous consumption provided proof of their corruption and decadence. The widespread corruption and incompetence of its leadership led to a waning in civic pride among the citizens.
  • The decline in productive commercial and agricultural industries due to high taxes on producers, used to support the military empire, contributed to the circumstances that allowed barbarian invasions to succeed.
  • The moral decay of the people was caused by the influx of slave labor from conquered territories, resulting in a decline in middle class work ethic, and the subsequent rise in the level of citizens on the dole. An economy based upon slave labor precluded a middle class with buying power.

In Part Two of this tale of two empires, I’ll document the parallels between mistakes made, eternal human foibles, military misfortunes, financial misconduct, and moral decay, that denote the decline of the Roman and American Empires.

Obama’s ‘stupid stuff’ legacy

Off the keyboard of Pepe Escobar
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THE ROVING EYE

chessboard

Originally published in Asia Times on September 2, 2014
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But whether people see what’s happening in Ukraine, and Russia’s aggression towards its neighbors in the manner in which it’s financing and arming separatists; to what’s happened in Syria – the devastation that [President Bashar al-]Assad has wrought on his own people; to the failure in Iraq for Sunni and Shia and Kurd to compromise – although we’re trying to see if we can put together a government that actually can function; to ongoing terrorist threats; to what’s happening in Israel and Gaza – part of peoples’ concern is just the sense that around the world the old order isn’t holding and we’re not quite yet to where we need to be in terms of a new order that’s based on a set of different principles, that’s based on a sense of common humanity, that’s based on economies that work for all people. – President Barack Obama 

Looks like US President Barack Obama made a royal mess of what his mentor Dr Zbigniew “Grand Chessboard” Brzezinski taught him.

Dr Zbig always quotes Sir Halford John Mackinder’s three grand imperatives of imperial geostrategy; to prevent collusion and maintain security dependence among the vassals; to keep tributaries pliant and protected; and to keep the barbarians from coming together. 

After dabbling briefly with “leading from behind” – a non-starter – Obama finally went Mackinderesque with his stellar “Don’t Do Stupid Stuff” foreign policy doctrine. 

Nevertheless, an always alert former secretary of state Hillary Clinton said “Don’t do Stupid Stuff” isn’t a “foreign policy organizing principle”. Yet “Stupid Stuff” is all that the Obama foreign policy team knows how to do. 

Starting with Obama treating Russia under President Vladimir Putin the way Hillary’s husband treated Russia under vodka container Boris Yeltsin. Then came the decision – without any public debate – to start bombing Iraq all over again. And soon Syria. Bombs Away in Syraq! 

So “protect” Yazidis, yes. Protect Gazans, no. “Protect” Kiev’s bunch of neo-Nazis, fascists and shady oligarchs, yes. Protect Russophones in Eastern Ukraine, no. 

It all started with protecting Irbil – already protected by Sumerian goddess Ishtar for millennia. Then protecting Irbil and Baghdad. Then protecting all “strategic” sites in Iraq. 

Retired General Carter Ham of AFRICOM/”We came, we saw, he died” fame, was adamant that it will be “very difficult” to pull off so much protecting with only a few fighter jets. So drones will be needed. And troops on the ground. 

From protecting ExxonMobil and Chevron to double bombing in Syraq. No wonder the Return of the Living (Neo-Con) Dead are so excited. It’s the Greater Middle East all over again. And guess who will be part of the coalition of the willing to fight the Caliph? Britain, Australia, Turkey, Jordan and Gulf Cooperation Council stalwarts Qatar, Saudi Arabia and the United Arab Emirates. 

Almost the same bunch (five among seven) that enabled the rise of the Islamic State of Iraq and Syria (ISIS) in the first place, from “Assad must go” to “good” and “bad” jihadis, and finally to ISIS (now the Islamic State) configured as the sprawling abode – complete with flush private army – of Caliph Ibrahim. 

And no, there’s no strategy. Hee haw! 

Bye bye petrodollar 
Now let’s see the dividends of “Don’t Do Stupid Stuff” as applied to Ukraine. 

Back to the Mackinderesque Dr Zbig. Some vassals – the usual NATO/GCC suspects, but not all of them – may still believe they profit from “security dependence”, while others remain nervously pliant and, in theory, feel “protected” by the Empire of Chaos. 

But then the Empire of Chaos “encouraged” a de facto coup. And gave the green light for the new Kiev mob to do in Eastern Ukraine roughly what Israel does in Gaza. The idea in Ukraine was to bog down Russia in its western borderlands and cut off the economic/trade link between Russia and Germany. Cut Eurasia in half. 

But then Obama launched a Cold War 2.0 that could easily turn hot. He destroyed the relationship with chancellor Angela Merkel and Germany and amplified the strategic embrace between the Bear and the Dragon, with the result that Beijing started paying less attention to the “pivoting to Asia” because now it enjoys even more backing from Moscow. Meanwhile, Moscow further stalls Washington’s advances in Central Asia. 

Sanctions on Russia not only reinforce its internal market but also boost its foreign trade – way beyond European shores. Yet still it was not enough to totally sell out to Wall Street and totally wreck US foreign policy. With aides/advisors like National Security Advisor Susan Rice, Deputy National Security Advisor Benjamin Rhodes, US Ambassador to the United Nations Samantha Power, and Assistant Secretary of State Victoria Nuland, who needs enemies? 

Obama’s sanctions hysteria is leading the way to the progressive end of the US dollar as reserve currency, and the end of the petrodollar. 

Witness this – the most important news of these last few months after the Russia-China “gas deal of the century”. 

Obama is accelerating the now uncontrolled collapse of the Empire of Chaos. The new axis of the future – Beijing, Moscow, Berlin – is slowly but surely coming together. There’s nothing “barbarian” about them. And the bulk of the Global South supports them. 

“The old order isn’t holding” – indeed. “The Caliph is evil. So I’m applying more sanctions on Russia.” How’s that for Empire management? Good boy. Now pivot. With yourself. And with no strategy. 

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007), Red Zone Blues: a snapshot of Baghdad during the surge (Nimble Books, 2007), and Obama does Globalistan (Nimble Books, 2009).

Fourth Turning: The People versus Big Brother

Off the keyboard of Jim Quinn

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Published on The Burning Platform on March 13, 2014

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“The risk of catastrophe will be very high. The nation could erupt into insurrection or civil violence, crack up geographically, or succumb to authoritarian rule. If there is a war, it is likely to be one of maximum risk and effort – in other words, a total war. Every Fourth Turning has registered an upward ratchet in the technology of destruction, and in mankind’s willingness to use it.” 

– Strauss & Howe – The Fourth Turning

“In the need to develop a capacity to know what potential enemies are doing, the United States government has perfected a technological capability that enables us to monitor the messages that go through the air. Now, that is necessary and important to the United States as we look abroad at enemies or potential enemies. We must know, at the same time, that capability at any time could be turned around on the American people, and no American would have any privacy left such is the capability to monitor everything—telephone conversations, telegrams, it doesn’t matter. There would be no place to hide.

If this government ever became a tyrant, if a dictator ever took charge in this country, the technological capacity that the intelligence community has given the government could enable it to impose total tyranny, and there would be no way to fight back because the most careful effort to combine together in resistance to the government, no matter how privately it was done, is within the reach of the government to know. Such is the capability of this technology.

I don’t want to see this country ever go across the bridge. I know the capacity that is there to make tyranny total in America, and we must see to it that this agency and all agencies that possess this technology operate within the law and under proper supervision so that we never cross over that abyss. That is the abyss from which there is no return.”Frank Church on Meet the Press regarding the NSA – 1975

Ever since Edward Snowden burst onto the worldwide stage in June 2013, I’ve been wondering how he fits into the fabric of this ongoing Fourth Turning. This period of Crisis that arrives like clockwork, 60 to 70 years after the end of the previous Fourth Turning (Civil War – 66 years after American Revolution, Great Depression/World War II – 64 years after Civil War, Global Financial Crisis – 62 years after World War II), arrived in September 2008 with the Federal Reserve created collapse of the global financial system. We are now five and a half years into this Fourth Turning, with its climax not likely until the late-2020’s. At this point in previous Fourth Turnings a regeneracy had unified sides in their cause and a grey champion or champions (Ben Franklin/Samuel Adams, Lincoln/Davis, FDR) had stepped forward to lead. Thus far, no one from the Prophet generation has been able to unify the nation and create a sense of common civic purpose. Societal trust continues to implode, as faith in political, financial, corporate, and religious institutions spirals downward. There is no sign of a unifying regeneracy on the horizon.

The core elements of this Fourth Turning continue to propel this Crisis: debt, civic decay, global disorder. Central bankers, politicians, and government bureaucrats have been able to fashion the illusion of recovery and return to normalcy, but their “solutions” are nothing more than smoke and mirrors exacerbating the next bloodier violent stage of this Fourth Turning. The emergencies will become increasingly dire, triggering unforeseen reactions and unintended consequences. The civic fabric of our society will be torn asunder.

In retrospect, the spark might seem as ominous as a financial crash, as ordinary as a national election, or as trivial as a Tea Party. The catalyst will unfold according to a basic Crisis dynamic that underlies all of these scenarios: An initial spark will trigger a chain reaction of unyielding responses and further emergencies. The core elements of these scenarios (debt, civic decay, global disorder) will matter more than the details, which the catalyst will juxtapose and connect in some unknowable way. If foreign societies are also entering a Fourth Turning, this could accelerate the chain reaction. At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where America will have neglected, denied, or delayed needed action.” – The Fourth Turning – Strauss & Howe

Debt

The core crisis element of debt is far worse than it was at the outset of this Crisis in September 2008. The National Debt has risen from $9.7 trillion to $17.5 trillion, an 80% increase in five and half years. It took 215 years for the country to accumulate as much debt as it has accumulated since the start of this Crisis. We continue to add $2.8 billion a day to the National debt, and the president declares it is time for this austerity to end. The total unfunded liabilities of the Federal government for Social Security, Medicare, Medicaid, government pensions and now Obamacare exceeds $200 trillion and is mathematically impossible to honor. Corporate debt stands at an all-time high. Margin debt is at record levels, as faith in the Federal Reserve’s ability to levitate the stock market borders on delusional. Consumer debt has reached new heights, as the government doles out subprime auto loans to deadbeats and subprime student loans to future University of Phoenix Einsteins. Global debt has surged by 40% since 2008 to over $100 trillion, as central bankers have attempted to cure a disease caused by debt with more debt.

All of this debt accumulation is compliments of Bernanke/Yellen and the Federal Reserve, who have produced this new debt bubble with their zero interest rate policy and quantitative easing that has driven their balance sheet from $935 billion of mostly Treasury bonds in September 2008 to $4.2 trillion of toxic mortgage garbage acquired from their owners – the insolvent Too Big To Trust Wall Street banks. This entire house of cards is reliant upon permanently low interest rates, the faith of foreigners in our lies, and trust in Ivy League educated economists captured by Wall Street. This debt laden house of cards sits atop hundreds of trillions of derivatives of mass destruction used by the Wall Street casinos to generate “riskless” profits. When, not if, a trigger ignites this explosive concoction of debt, the collapse will be epic and the violent phase of this Fourth Turning will commence.

Civic Decay

The core crisis element of civic decay is evident everywhere you turn. Our failed public educational system is responsible for much of the civic decay, as a highly educated critical thinking populace is our only defense against a small cabal of bankers and billionaires acquiring unwarranted influence and control over our country. Our children have been taught how to feel and to believe government propaganda. The atrocious educational system is not a mistake. It has been designed and manipulated by your owners to produce the results they desire, as explained bluntly by George Carlin.

“There’s a reason that education sucks, and it’s the same reason it will never ever ever be fixed. It’s never going to get any better, don’t look for it. Be happy with what you’ve got. Because the owners of this country don’t want that. I’m talking about the real owners now, the big, wealthy, business interests that control all things and make the big decisions. They spend billions of dollars every year lobbying to get what they want. Well, we know what they want; they want more for themselves and less for everybody else. But I’ll tell you what they don’t want—they don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. That’s against their interest.”

The urban ghettos become more dangerous and uninhabitable by the day. The inner cities are crumbling under the weight of welfare spending and declining tax revenues. The very welfare policies begun fifty years ago to alleviate poverty have hopelessly enslaved the poor and ignorant in permanent squalor and destitution. The four decade old drug war has done nothing to reduce the use of drugs. It has benefited the corporate prison industry, as millions have been thrown into prison for minor drug offenses. Meanwhile, millions more have been legally addicted to drugs peddled by the corporate healthcare complex. The culture warriors and advocates of new rights for every special interest group continue their never ending battles which receive an inordinate amount of publicity from the corporate media. Class warfare is simmering and being inflamed by politicians pushing their particular agendas. Violence provoked by race and religion is growing by the day. The fault lines are visible and the imminent financial earthquake will push distress levels beyond the breaking point. Once the EBT cards stop working, all hell will break loose. Three days of panic will empty grocery store shelves and the National Guard will be called out to try and restore control.

Global Disorder

The core crisis element of global disorder is evident everywhere you turn. The false flag revolution in the Ukraine, initiated by the U.S. and EU in order to blunt Russia’s control of natural gas to Europe, has the potential to erupt into a full blown shooting war at any moment. The attempt by Saudi Arabia, Israel and the U.S. to overthrow the Syrian dictator in order to run a natural gas pipeline across their land into Europe was blunted by Russia. Iraq is roiled in a civil war, after the U.S. invaded, occupied and destabilized the country. After 12 years of occupation, Afghanistan is more dysfunctional and dangerous than it was before the U.S. saved them from the evil Taliban. Unrest, violent protests, and brutal measures by rulers continue in Egypt, Turkey, Thailand, Venezuela, Bahrain, Brazil, and throughout Africa. American predator drones roam the skies of the world murdering suspected terrorists. The European Union is insolvent, with Greece, Spain, Italy and Portugal propped up with newly created debt. Austerity for the people and prosperity for the bankers is creating tremendous distress and tension across the continent. A global volcanic eruption is in the offing.

It is clear to me the American Empire is in terminal decline. Hubris, delusion, corruption, foolish disregard for future generations and endless foreign follies have set in motion a chain of events that will lead to a cascading sequence of debt defaults, mass poverty, collapsing financial markets, and hyperinflation or deflation, depending on the actions of feckless bankers and politicians. There is no avoiding the tragic outcome brought on by decades of bad choices and a century of allowing private banking interests to control our currency. The “emergency” QE and ZIRP responses by the Federal Reserve to the Federal Reserve created 2008 financial collapse continue, even though the propaganda peddled by the Deep State tries to convince the public we have fully recovered. This grand fraud cannot go on forever. Ponzi schemes no longer work once you run out of dupes. With societal trust levels approaching all-time lows and foreign countries beginning to understand they are the dupes, another global financial crisis is a lock.

The Snowden Factor

With ten to fifteen years likely remaining in this Fourth Turning Crisis, people familiar with generational turnings can’t help but ponder what will happen next. Linear thinkers, who constitute the majority, mistakenly believe things will magically return to normal and we’ll continue our never ending forward human progress. Their ignorance of history and generational turnings that recur like the four seasons will bite them in the ass. We are being flung forward across the vast chaos of time and our existing social order will be transformed beyond recognition into something far better or far worse. The actual events over the coming decade are unknowable in advance, but the mood and reactions of the generational archetypes to these events are predictable. The actions of individuals will matter during this Fourth Turning. The majority are trapped in their propaganda induced, techno distracted stupor of willful ignorance. It will take a minority of liberty minded individuals, who honor the principles of the U.S. Constitution and are willing to sacrifice their lives, to prevail in the coming struggle.

Despite fog engulfing the path of future events, we know they will be propelled by debt, civic decay, and global disorder. Finding a unifying grey champion figure seems unlikely at this point. I believe the revelations by Edward Snowden have set the course for future events during this Fourth Turning. The choices of private citizens, like Snowden, Assange, and Manning, have made a difference. The choices we all make over the next ten years will make a difference. A battle for the soul of this country is underway. The Deep State is firmly ingrained, controlling the financial, political and educational systems, while using their vast wealth to perpetuate endless war, and domination of the media to manipulate the masses with propaganda and triviality. They are powerful and malevolent. They will not relinquish their supremacy and wealth willingly.

Snowden has revealed the evil intent of the ruling class and their willingness to trash the Constitution in their psychopathic pursuit of mammon. The mass surveillance of the entire population, locking down of an entire city in pursuit of two teenagers, military training exercises in major metropolitan areas, militarization of local police forces by DHS, crushing peaceful demonstrations with brute force, attempting to restrict and confiscate guns, molesting innocent airline passengers, executive orders utilized on a regular basis by the president, and treating all citizens like suspects has set the stage for the coming conflict. Strauss & Howe warned that history has shown armed conflict is always a major ingredient during a Fourth Turning.

“History offers even more sobering warnings: Armed confrontation usually occurs around the climax of Crisis. If there is confrontation, it is likely to lead to war. This could be any kind of war – class war, sectional war, war against global anarchists or terrorists, or superpower war. If there is war, it is likely to culminate in total war, fought until the losing side has been rendered nil – its will broken, territory taken, and leaders captured.” The Fourth Turning – Strauss & Howe -1997

It appears to me the Deep State is preparing for armed conflict with the people. Why else would they be utilizing Big Brother methods of surveillance, militarization of police forces  and Gestapo like tactics of intimidation to control the masses? This doesn’t happen in a democratic republic where private individuals are supposed to know everything done by public government servants, not vice versa. They know the cheap, easy to access energy resources are essentially depleted. They know the system they have built upon a foundation of cheap energy and cheap debt is unsustainable and will crash in the near future. They know their fiat currency scheme is failing.They know it is going to come crashing down.  

They know America and the world will plunge into an era of depression, violence, and war. They also know they want to retain their wealth, power and control. There is no possibility the existing establishment can be purged through the ballot box. It’s a one party Big Brother system that provides the illusion of choice to the Proles. Like it or not, the only way this country can cast off the shackles of the banking, corporate, fascist elites, and the government surveillance state is through an armed revolution. The alternative is to allow an authoritarian regime, on par with Hitler, Stalin and Mao, to rise from the ashes of our financial collapse. This is a distinct possibility, given the ignorance and helplessness of most Americans after decades of government education and propaganda.       

The average mentally asleep American cannot conceive of armed conflict within the borders of the U.S. War, violence and dead bodies are something they see on their 52 inch HDTVs while gobbling chicken wings and cheetos in their Barcalounger. We’ve allowed a banking cartel and their central bank puppets to warp and deform our financial system into a hideous façade, sold to the masses as free market capitalism. We’ve allowed corporate interests to capture our political system through bribery and corruption.

We’ve allowed the rise of a surveillance state that has stripped us of our privacy, freedom, liberty and individuality in a futile pursuit of safety and security. We’ve allowed a military industrial complex to exercise undue influence in Washington DC, leading to endless undeclared wars designed to enrich the arms makers. We’ve allowed the corporate media and the government education complex to use propaganda, misinformation and social engineering techniques to dumb down the masses and make them compliant consumers. These delusions will be shattered when our financial and economic system no longer functions. The end is approaching rapidly and very few see it coming.

Glory or Ruin?

The scenario I envision is a collapse of our debt saturated financial system, with a domino effect of corporate, personal, and governmental defaults, exacerbated by the trillions of currency, interest rate, and stock derivatives. Global stock markets will crash. Trillions in paper wealth will evaporate into thin air. The Greater Depression will gain a choke-hold around the world. Mass bankruptcies, unemployment and poverty will sweep across the land. The social safety net will tear under the weight of un-payable entitlements. Riots and unrest will breakout in urban areas. Armed citizens in rural areas will begin to assemble in small units. The police and National Guard will be unable to regain control. The military will be called on to suppress any and all resistance to the Federal government. This act of war will spur further resistance from liberty minded armed patriots. The new American Revolution will have begun. Leaders will arise in the name of freedom. Regional and local bands of fighters will use guerilla tactics to defeat a slow top heavy military dependent upon technology and vast quantities of oil. A dictatorial regime may assume power on a Federal level. A breakup of the nation into regional states is a distinct possibility.

With the American Empire crumbling from within, our international influence will wane. With China also in the midst of a Fourth Turning, their debt bubble will burst and social unrest will explode into civil war. Global disorder, wars, terrorism, and financial collapse will lead to a dramatic decrease in oil production, further sinking the world into depression. The tensions caused by worldwide recession will lead to the rise of authoritarian regimes and global warfare. With “advances” in technological warfare and the proliferation of nuclear warheads, this scenario has the potential to end life on earth as we know it. The modern world could be set back into the stone-age with the push of a button. There are no guarantees of a happy ending for humanity.

The outcome of this Fourth Turning is dependent upon the actions of a minority of critical thinking Americans who decide to act. No one can avoid the trials and tribulations that lie ahead. We will be faced with immense challenges. Courage and sacrifice will be required in large doses. Elders will need to lead and millennials will need to carry a heavy load, doing most of the dying. The very survival of our society hangs in the balance. Edward Snowden has provided an example of the sacrifice required during this Fourth Turning. How we respond and the choices we make over the next decade will determine whether this Fourth Turning will result in glory or ruin for our nation.

 

“Eventually, all of America’s lesser problems will combine into one giant problem. The very survival of the society will feel at stake, as leaders lead and people follow. The emergent society may be something better, a nation that sustains its Framers’ visions with a robust new pride. Or it may be something unspeakably worse. The Fourth Turning will be a time of glory or ruin.” – Strauss & Howe – The Fourth Turning

Click these links to read the first two parts of this three part series:

Do No Evil Google – Censor & Snitch for the State

Google, China, the NSA and the Fourth Turning

Trying to Stay Sane in an Insane World- At World’s End

Off the keyboard of Jim Quinn

Published on The Burning Platform on September 10, 2013

Cuckoos_Nest

Discuss this article at the Geopolitics Table inside the Diner

In the first three parts (Part 1, Part 2, Part 3) of this disheartening look back at a century of central banking, income taxing, military warring, energy depleting and political corrupting, I made a case for why we are in the midst of a financial, commercial, political, social and cultural collapse. In this final installment I’ll give my best estimate as to what happens next and it has a 100% probability of being wrong. There are so many variables involved that it is impossible to predict the exact path to our world’s end. Many people don’t want to hear about the intractable issues or the true reasons for our predicament. They want easy button solutions. They want someone or something to fix their problems. They pray for a technological miracle to save them from decades of irrational myopic decisions. As the domino-like collapse worsens, the feeble minded populace becomes more susceptible to the false promises of tyrants and psychopaths. There are a myriad of thugs, criminals, and autocrats in positions of power who are willing to exploit any means necessary to retain their wealth, power and control. The revelations of governmental malfeasance, un-Constitutional mass espionage of all citizens, and expansion of the Orwellian welfare/warfare surveillance state, from patriots like Julian Assange, Bradley Manning and Edward Snowden has proven beyond a doubt the corrupt establishment are zealously anxious to discard and stomp on the U.S. Constitution in their desire for authoritarian control over our society.

Anyone who denies we are in the midst of an ongoing Crisis that will lead to a collapse of the system as we know it is either a card carrying member of the corrupt establishment, dependent upon the oligarchs for their living, or just one of the willfully ignorant ostriches who choose to put their heads in the sand and hum the Star Spangled Banner as they choose obliviousness to awareness. Thinking is hard. Feeling and believing a storyline is easy.

 

A moral society must be inhabited by an informed, educated, aware populace and   governed by honorable leaders who oversee based upon the nation’s founding principles of liberty, freedom and limited government of, by and for the people. A moral society requires trust, honor, property rights, simple just laws, and the freedom to succeed or fail on your own merits. There is one major problem in creating a true moral society where liberty, freedom, trust, honor and free markets are cherished – human beings. We are a deeply flawed species who are prone to falling prey to the depravities of lust, gluttony, greed, sloth, wrath, envy and pride. Men have always been captivated by the false idols of dominion, power and wealth. The foibles of human nature haven’t changed over the course of history. This is why we have 80 to 100 year cycles driven by the same human strengths and shortcomings revealed throughout recorded history.

Empires rise and fall due to the humanness of their leaders and citizens. The great American Empire is no different. It was created a mere 224 years ago by courageous patriots who risked their wealth and their lives to create a Republic founded upon the principles of freedom, liberty, and the pursuit of happiness; took a dreadful wrong turn in 1913 with the creation of a privately held central bank to control its currency and introduction of an income tax; devolved into an empire after World War II, setting it on a course towards bankruptcy; sealed its fate in 1971 by unleashing power hungry psychopathic elitists to manipulate the monetary and fiscal policies of the nation to enrich themselves; and has now entered the final frenzied phase of pillaging, currency debasement, war mongering, and ransacking of civil liberties. Despite the frantic efforts of the financial elite, their politician puppets, and their media propaganda outlets, collapse of this aristocracy of the moneyed is a mathematical certainty. Faith in the system is rapidly diminishing, as the issuance of debt to create the appearance of growth has reached the point of diminishing returns.

 

Increase in Real GDP per Dollar of Incremental Debt

“At the root of America’s economic crisis lies a moral crisis: the decline of civic virtue among America’s political and economic elite. A society of markets, laws, and elections is not enough if the rich and powerful fail to behave with respect, honesty, and compassion toward the rest of society and toward the world.”Jeffrey Sachs

Five Stages of Collapse

The day of reckoning for a century of putting our faith in the wrong people with wrong ideas and evil intentions is upon us. Dmitry Orlov provides a blueprint for the collapse in his book The Five Stages of Collapse – Survivors’ Toolkit:

Stage 1: Financial Collapse. Faith in “business as usual” is lost. The future is no longer assumed to resemble the past in any way that allows risk to be assessed and financial assets to be guaranteed. Financial institutions become insolvent; savings wiped out and access to capital is lost.

Stage 2: Commercial Collapse. Faith that “the market shall provide” is lost. Money is devalued and/or becomes scarce, commodities are hoarded, import and retail chains break down and widespread shortages of survival necessities become the norm.

Stage 3: Political Collapse. Faith that “the government will take care of you” is lost. As official attempts to mitigate widespread loss of access to commercial sources of survival necessities fail to make a difference, the political establishment loses legitimacy and relevance.

Stage 4: Social Collapse. Faith that “your people will take care of you” is lost, as social institutions, be they charities or other groups that rush to fill the power vacuum, run out of resources or fail through internal conflict.

Stage 5: Cultural Collapse. Faith in the goodness of humanity is lost. People lose their capacity for “kindness, generosity, consideration, affection, honesty, hospitality, compassion, charity.” Families disband and compete as individuals for scarce resources. The new motto becomes “May you die today so that I can die tomorrow.”

The collapse is occurring in fits and starts. The stages of collapse do not necessarily have to occur in order.  You can recognize various elements of the first three stages in the United States today. Stage 1 commenced in September 2008 when this Crisis period was catalyzed by the disintegration of the worldwide financial system caused by Wall Street intentionally creating the largest control fraud in world history, with easy money provided by Greenspan/Bernanke, fraudulent mortgage products, fake appraisals, bribing rating agencies to provide AAA ratings to derivatives filled with feces, and having their puppets in the media and political arena provide the propaganda to herd the sheep into the slaughterhouse.

The American people neglected their civic duty to elect leaders who would tell them the truth and represent current and future generations equally. They have neglected the increasing lawlessness of Wall Street, K Street and the corporate suite. The American people have lived in denial about their responsibility for their own financial well-being, willingly delegating it to a government of math challenged politicians who promised trillions more than they could ever deliver. The American people have delayed tackling the dire issues confronting our nation, including: $200 trillion of unfunded liabilities, the military industrial complex creating wars across the globe, militarization of our local police forces, domestic spying on every citizen, allowing mega-corporations and the financial elite to turn our nation from savings based production to debt based consumption, and allowing corporations, the military industrial complex, Wall Street, and shadowy billionaires to pick and control our elected officials. The civic fabric of the country is being torn at the points of extreme vulnerability.

“At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where, during the Unraveling, America will have neglected, denied, or delayed needed action. Anger at “mistakes we made” will translate into calls for action, regardless of the heightened public risk. It is unlikely that the catalyst will worsen into a full-fledged catastrophe, since the nation will probably find a way to avert the initial danger and stabilize the situation for a while. Yet even if dire consequences are temporarily averted, America will have entered the Fourth Turning.”  – The Fourth Turning – Strauss & Howe – 1997

Our Brave New World controllers (bankers, politicians, corporate titans, media moguls, shadowy billionaires) were able to avert a full-fledged catastrophe in the fall of 2008 and spring of 2009 which would have put an end to their reign of destruction. To accept the rightful consequences of their foul actions was intolerable to these obscenely wealthy, despicable men. Their loathsome and vile solutions to a crisis they created have done nothing to relieve the pain and suffering of the average person, while further enriching them, as they continue to gorge on the dying carcass of a once thriving nation. Despite overwhelming public outrage, Congress did as they were instructed by their Wall Street masters and handed over $700 billion of taxpayer funds into Wall Street vaults, under the false threat of systematic collapse. The $800 billion of pork stimulus was injected directly into the veins of corporate campaign contributors. The $3 billion Cash for Clunkers scheme resulted in pumping taxpayer dollars into the government owned union car companies, while driving up the prices of used cars and hurting lower income folks.

Ben Bernanke has peddled the false paradigm of quantitative easing (code for printing money and airlifting it to Wall Street) as benefitting Main Street. Nothing could be further from the truth. He bought $1.3 trillion of toxic mortgage backed securities from his Wall Street owners. He has pumped a total of $2.8 trillion into the hands of Wall Street since September 2008, and is singlehandedly generating $5 billion of risk free profits for these deadbeats by paying them .25% on their reserves. Drug dealer Ben continues to pump $2.8 billion per day into the veins of Wall Street addicts and any hint of tapering the heroin causes the addicts to flail about. Ben should be so proud. He should hang a Mission Accomplished banner whenever he gives a speech. Bank profits reached an all-time record in the 2nd quarter, at $42.2 billion, with 80% of those profits going to the 2% Too Big To Trust Wall Street Mega-Goliath Banks. It’s enough to make a soon to retire, and take a Wall Street job, central banker smile.

“The money rate can, indeed, be kept artificially low only by continuous new injections of currency or bank credit in place of real savings. This can create the illusion of more capital just as the addition of water can create the illusion of more milk. But it is a policy of continuous inflation. It is obviously a process involving cumulative danger. The money rate will rise and a crisis will develop if the inflation is reversed, or merely brought to a halt, or even continued at a diminished rate. Cheap money policies, in short, eventually bring about far more violent oscillations in business  than those they are designed to remedy or prevent.” Henry Hazlitt – 1946

Any serious minded person knew Wall Street had too much power, too much control, and too much influence in 2008 when they crashed our economic system. When something is too big to fail because it will create systematic collapse, you make it smaller. Instead we have allowed our sociopathic rulers to allow these parasitic institutions to get even larger. Just 12 mega-banks control 70% of all the banking assets in the country, with 90% controlled by the top 86 banks. There are approximately 8,000 financial institutions in this country. Wall Street will be congratulating themselves with record compensation of $127 billion and record bonuses of $23 billion for a job well done. It is dangerous work making journal entries relieving loan loss reserves, committing foreclosure fraud, marking your assets to unicorn, making deposits at the Fed, and counting on the Bernanke Put to keep stocks rising. During a supposed recovery from 2009 to 2011, average real income per household grew pitifully by 1.7%, but all the gains accrued to Bernanke’s minions. Top 1% incomes grew by 11.2% while bottom 99% incomes shrunk by 0.4%. Therefore, the top 1% captured 121% of the income gains in the first two years of the recovery. This warped trend has only accelerated since 2011.

The median household income has fallen by $2,400 to $52,100 since the government proclaimed the end of the recession in 2009. Real wages for real people continue to fall. A record 23.1 million households (20% of all households) are receiving food stamps. After four years of “recovery” propaganda, we are left with 2.2 million less people employed (5 million less full time jobs) and 22 million more people on SNAP and SSDI. A record 90.5 million working age Americans are not working, with labor participation at a 35 year low. Ben’s money has not trickled down, but his inflation has fallen like a load of bricks on the heads of the middle class. Bernanke’s QE to infinity constitutes a transfer of purchasing power away from the middle class to the bankers, mega-corporations and .1%. This Cantillon effect means that newly created money is neither distributed evenly nor simultaneously among the population. Some users of money profit from rising prices, and others suffer from them. This results in a transfer of wealth (a hidden tax) from later receivers to earlier receivers of new money. This is why the largest banks and largest corporations are generating the highest profits in history, while the average person sinks further into debt as their real income declines and real living expenses (energy, food, clothing, healthcare, tuition) rise.

Screen Shot 2013-03-04 at 12.35.48 PM.png

Ben works for your owners. Real GDP (using the fake government inflation adjustment) since July 2009 is up by a wretched 5.6%. Revenue growth of the biggest corporations in the world is up by a pathetic 12%. One might wonder how corporate profits could be at record levels with such doleful economic performance. One needs to look no further than Ben’s balance sheet, which has increased by 174%. There appears to be a slight correlation between Ben’s money printing and the 162% increase in the S&P 500 index. With the top 1% owning 42.1% of all financial assets (top .1% own most of this) and the bottom 80% owning only 4.7% of all financial assets, one can clearly see who benefits from QE to infinity.

The key take away from what the ruling class has done since 2008 is they have only temporarily delayed the endgame. Their self-serving exploits have guaranteed that round two of the financial collapse will be epic in proportion and intensity. This Fourth Turning Crisis is ongoing. The linear thinkers who control the levers of power keep promising a return to normalcy and resumption of growth. This is an impossibility – mathematically & socially. Fourth Turnings do not end without the existing social order being swept away in a tsunami of turmoil, violence, suffering and war. Orlov’s stages of collapse will likely occur during the remaining fifteen years of this Crisis. We are deep into Stage 1 as our national Detroitification progresses towards bankruptcy, with an added impetus from our trillion dollar wars of choice in the Middle East. Commercial collapse has begun, as faith in the fantasy of free market capitalism is waning. The race to the bottom with currency debasement around the globe is reaching a tipping point, and the true eternal currencies of gold and silver are being hoarded and shipped from the West to the Far East.

Monetary Base (billions of USD)

When the financial collapse reaches its crescendo, the just in time supply chain, that keeps cheese doodles and cheese whiz on your grocery store shelves, Chinese produced iGadgets in your local Wal-Mart Supercenter, and gasoline flowing out of gas station hoses into your leased Cadillac Escalade, will break down rapidly. The strain of $110 oil is already evident. The fireworks will really get going when ATM machines run dry and the EBT cards stop functioning. Within a week riots and panic will engulf the country.

“At some point we are bound to hear, from across two oceans, the shocking words “Your money is no good here.” Fast forward to a week later: banks are closed, ATMs are out of cash, supermarket shelves are bare and gas stations are starting to run out of fuel. And then something happens: the government announces they have formed a crisis task force, and will nationalize, recapitalize and reopen banks, restoring confidence. The banks reopen, under heavy guard, and thousands of people get arrested for attempting to withdraw their savings. Banks close, riots begin. Next, the government decides that, to jump-start commerce, it will honor deposit guarantees and simply hand out cash. They print and arrange for the cash to be handed out. Now everyone has plenty of cash, but there is still no food in the supermarkets or gasoline at the gas stations because by now the international supply chains have broken down and the delivery pipelines are empty.”  Dmitry Orlov – The Five Stages of Collapse

We are witnessing the beginning stages of political collapse. The government and its leaders are being discredited on a daily basis. The mismanagement of fiscal policy, foreign policy and domestic policy, along with the revelations of the NSA conducting mass surveillance against all Americans has led critical thinking Americans to question the legitimacy of the politicians running the show on behalf of the bankers, corporations and arms dealers. The Gestapo like tactics used by the government in Boston was an early warning sign of what is to come. Government entitlement promises will vaporize, as they did in Detroit, with pension promises worth only ten cents on the dollar. Total social and cultural collapse could resemble the chaotic civil war scenarios playing out in Libya and Syria. The best case scenario would be for a collapse similar to the Soviet Union’s relatively peaceful disintegration into impotent republics. I don’t believe we’ll be this fortunate. The most powerful military empire in world history will not fade away. It will go out in a blaze of glory with a currency collapse, hyper-inflation, and war on a grand scale.

“History offers even more sobering warnings: Armed confrontation usually occurs around the climax of Crisis. If there is confrontation, it is likely to lead to war. This could be any kind of war – class war, sectional war, war against global anarchists or terrorists, or superpower war. If there is war, it is likely to culminate in total war, fought until the losing side has been rendered nil – its will broken, territory taken, and leaders captured.”The Fourth Turning – Strauss & Howe – 1997

In Whom Do You Trust?

“Use of money concentrates trust in a single central authority – the central bank – and, over extended periods of time, central banks always tend to misbehave. Eventually the “print” button on the central banker’s emergency console becomes stuck in the depressed position, flooding the world with worthless notes. People trust that money will remain a store of value, and once the trust is violated a gigantic black hole appears at the very center of society, sucking in peoples’ savings and aspirations along with their sense of self-worth. When those who have become psychologically dependent on money as a yardstick, to be applied to everything and everyone, suddenly find themselves in a world where money means nothing, it is as if they have gone blind; they see shapes but can no longer resolve them into objects. The result is anomie – a sense of unreality – accompanied by deep depression. Money is an addiction – substance-less and unreal, and sets itself up for a severe and lengthy withdrawal.” Dmitry Orlov – The Five Stages of Collapse

Our modern world revolves around wealth, the appearance of wealth, the false creation of wealth through the issuance of debt, and trust in the bankers and politicians pulling the levers behind the curtain. The entire world economic system is dependent on trusting central bankers whose only response to any crisis is to create more debt. The death knell is ringing loud and clear, but people around the globe are desperately clinging to their normalcy biases and praying to the gods of cognitive dissonance. It seems the only things that matter to our controllers are stock market levels, the continued flow of debt to the plebs, continued doling out of hush money to those on the dole, and of course an endless supply of brown skinned enemies to attack. With every country in the world attempting to the same solution of debasing their currencies, we are rapidly approaching the tipping point. India is the canary in the coal mine.

Government, Household, Financial & Non-Financial Debt (% of GDP)

An exponential growth model built upon cheap plentiful energy and debt creation has its limits, and we’ve reached them. With the depletion of inexpensive, easily accessible energy resources, higher prices will continue to slow world economies. Demographics in the developed world are slowing the global economy as millions approach their old age with little savings due to over consuming during their peak earnings years. Bernanke has already quadrupled his balance sheet with no meaningful benefit to the economy or the financial well-being of the average middle class American. Financial manipulation that creates nothing has masked the rot consuming our economic system. The game has been rigged in favor of the owners, but even a rigged game eventually comes to an end. Americans and Europeans can no longer maintain a façade of wealth by buying knickknacks from China with money they don’t have. The US and Europe are finding that their credit is no longer good in the exporting Far East countries. This is a perilous development, as the West has depended upon foreigners to accommodate its never ending expansion of credit. Without that continual expansion of debt, the Ponzi scheme comes crashing down. As China, Japan and the rest of Asia have balked at buying U.S. Treasuries with negative real yields, the only recourse for Ben has been to monetize the debt through QE and inflation. The doubling of ten year Treasury rates in a matter of three months due to just talk of possibly slowing QE should send shivers down your spine.

We are supposedly five years past the great crisis. Magazine covers proclaimed Bernanke a hero. If we are well past the crisis, why are the extreme emergency measures still in effect? If the economy is growing and jobs are being created, why do we need $85 billion of government debt to be monetized each and every month? Why are the EU, Japan, and China printing even faster than the Fed? The answer is simple. If the debt was not being monetized, it would have to be purchased out in the free market. Purchasers would require an interest rate far above the 2.9% being paid today. The debt levels in the U.S., Europe and Japan are so large that a rise in interest rates of just a few points would explode budget deficits and lead to a worldwide financial collapse. This is why Bernanke and the rest of his central banker brethren are trapped by their own ideology of bubble production. Just the slowing of debt creation will lead to collapse. Bernanke needs a Syrian crisis to postpone the taper talk. Those in control need an endless number of real or false flag crises to provide cover for their printing presses to keep rolling.

There are a couple analogies that apply to our impending doom. The country is like a 224 year old oak tree that has been slowly rotting on the inside due to the insidious diseases of hubris, apathy, selfishness, dependence, delusion, and debasement. The old oak gives an outward appearance of health and stability. Winter has arrived and gale force winds are in the forecast. One gust of wind and the mighty aged oak will topple and come crashing to earth. I think an even more fitting analogy is the sandpile with grains of sand being added day after day. Seven out of ten Americans receive more in government benefits than they pay in taxes. Goliath corporations and the uber-wealthy use the tax code and legislation to syphon hundreds of billions from the national treasury every year. We spend $1 trillion per year on past, current and future wars of choice. Annual interest on the debt we’ve racked up in the last few decades already approaches $400 billion per year. The entire Federal budget totaled $400 billion in 1977. The sandpile grows ever higher, while its instability expands exponentially. One seemingly innocuous grain of sand will ultimately cause the pile to collapse catastrophically. Will it be an unintended consequence of a missile launch into Syria? Will it be a spike in oil prices? Will it be the collapse of one of the EU PIIGS? Will it be an assassination of a political figure or banker? No one knows. But that innocuous grain of sand will trigger the collapse of the entire pile.

Worried people are looking for solutions. They often get angry at me because they don’t think I provide answers to the issues I raise about our corrupt failing system. They want easy answers to intractable problems. Sadly, I’ve come to the conclusion that our system and majority of citizens are too corrupted to change our course through the ballot box or instituting policies along the lines of those proposed by Ron Paul and many other thoughtful liberty minded people. We are experiencing the downside of a representative democracy.  Once a person is democratically elected a gulf is created between the electors and the person they elected, as the representative becomes corrupted and bought by moneyed interests. Elected officials become a class unto themselves. The political class grows to be puppets that resemble human beings but are nothing but cogs in a vast corporate run machine, pawns in an enormous game of chess played by powerful vindictive immoral men.

There are no cures for our disease. It’s terminal. Anyone telling you they have the answers is either lying or trying to sell you something. More people and organizations are on the take than are playing by the rules. The producers are being overrun by the parasites. The barbarians are at the gate. An implosion of societal trust is underway. The next stage of this crisis, which I believe will materialize within the next twelve months will try the souls of the weary.

“As the Crisis catalyzes, these fears will rush to the surface, jagged and exposed. Distrustful of some things, individuals will feel that their survival requires them to distrust more things. This behavior could cascade into a sudden downward spiral, an implosion of societal trust. This might result in a Great Devaluation, a severe drop in the market price of most financial and real assets. This devaluation could be a short but horrific panic, a free-falling price in a market with no buyers. Or it could be a series of downward ratchets linked to political events that sequentially knock the supports out from under the residual popular trust in the system. As assets devalue, trust will further disintegrate, which will cause assets to devalue further, and so on.”The Fourth Turning – Strauss & Howe – 1997

As a nation we have squandered our inheritance, born of the blood of patriots. A freedom loving, liberty minded, self-responsible, courageous people have allowed ourselves to fall prey to selfishness, apathy, complacency and dependency. Once we allowed our human appetites of greed, power seeking, and control to override the moral responsibility for our own lives and the lives of future unborn generations, collapse was inevitable. The danger now is what happens after the unavoidable collapse. Will the millions of dependency zombies beg for a strong dictator to protect them, provide for them and lead them into further bondage? Or will the spark of liberty and freedom reignite, allowing citizens to throw off the shackles of banker and corporate control? I believe most of the people in this country are good hearted. We are merely pawns in this game of Risk being played by those seeking power, wealth and world domination. We are all trapped in our own forms of normalcy bias. Have I cashed out my retirement funds, sold my suburban house and built a doomstead in the mountains? No I haven’t. Do I second guess myself sometimes? Yes I do. But even the aware have families to support, jobs to go to, bills to pay, laundry to do, lawns to mow, and lives to live. I can’t live in constant fear of what might happen. We only get 80 or so years on this earth, if we’re lucky. The best we can do is leave a positive legacy for our children and their children. A drastic change to our way of life is coming, but most of us are trapped in a cage of our own making.

Each living generation will need to do their part during this Crisis if we are to survive the coming storm. Since no one knows the nature of how the next fifteen years will unfold, it would be wise to at least make basic preparations for food, water, heat and protection. This is easier for some than others, but you don’t have to star on Doomsday Preppers in order to stock up on items that can be purchased at Wal-Mart today, but won’t be available when the global supply chain breaks down. Make sure you have neighbors and family you can rely upon. A small community of like-minded people with varied skills is more likely to succeed in our brave old world than rugged individualists. With no financial means to maintain our globalized world, living locally will take on a new meaning. After much turmoil, chaos, violence, and likely mass casualties the best outcome would be for the Great American Empire to break into regional republics, incapable of waging global war, led by law abiding moral liberty minded individuals, and willing to trade freely and honestly with their fellow republics. Daily life would revert back to a simpler Amish like time. Would that be so bad?

This Fourth Turning could end with a whimper or a bang. There are enough nuclear arms to obliterate the world ten times over. There are enough hubristic egomaniacal psychopathic men in power, that the use of those weapons has a high likelihood of happening. It will be up to the people to not allow this horrific result. I love my country and despise my government. The Declaration of Independence clearly states that when a long train of abuses and usurpations lead toward despotism, it is our right and duty to throw off that government and provide new guards of liberty. My family comes first with my country a close second. I will fight with whatever means necessary to protect my family and do what I can to influence the future course of our country. Time is running out. Will we have the courage, fortitude and wisdom to make the right decisions over the next fifteen years? Will we choose glory or destruction? The fate of our nation hangs in the balance. Are you prepared? Are you ready to fight for your family and your rights?

The Fourth Turning could spare modernity but mark the end of our nation. It could close the book on the political constitution, popular culture, and moral standing that the word America has come to signify. The nation has endured for three saecula; Rome lasted twelve, the Soviet Union only one. Fourth Turnings are critical thresholds for national survival. Each of the last three American Crises produced moments of extreme danger: In the Revolution, the very birth of the republic hung by a thread in more than one battle. In the Civil War, the union barely survived a four-year slaughter that in its own time was regarded as the most lethal war in history. In World War II, the nation destroyed an enemy of democracy that for a time was winning; had the enemy won, America might have itself been destroyed. In all likelihood, the next Crisis will present the nation with a threat and a consequence on a similar scale.The Fourth Turning – Strauss & Howe – 1997

 

 IT’S OUR CHOICE.

Trying to Stay Sane in an Insane World: Part 3

Off the keyboard of Jim Quinn

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Published on The Burning Platform on August 25, 2013

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In Part 1 of this article I documented the insane remedies prescribed by the mad banker scientists presiding over this preposterous fiat experiment since they blew up the lab in 2008. In Part 2 I tried to articulate why the country has allowed itself to be brought to the brink of catastrophe. There is no turning back time. The choices we’ve made and avoided making over the last one hundred years are going to come home to roost over the next fifteen years. We are in the midst of a great Crisis that will not be resolved until the mid-2020s. The propagandists supporting the vested interests continue to assure the voluntarily oblivious populace the economy is improving, jobs are plentiful, inflation is under control, and housing is recovering. Bernanke and his band of merry money manipulators, Obama and his gaggle of government apparatchiks, and their mendacious mainstream media mouthpieces have enacted radical measures in the last five years that reek of desperation in their effort to give the appearance of revival to a failing economic system. Stimulating the net worth of bankers and connected corporate cronies through engineered stock market gains has not trickled down to the peasants. Our owners try to convince us it’s raining, but we know they’re pissing down our backs. Our Crisis mood is congealing.

“But as the Crisis mood congeals, people will come to the jarring realization that they have grown helplessly dependent on a teetering edifice of anonymous transactions and paper guarantees. Many Americans won’t know where their savings are, who their employer is, what their pension is, or how their government works. The era will have left the financial world arbitraged and tentacled: Debtors won’t know who holds their notes, homeowners who owns their mortgages, and shareholders who runs their equities – and vice versa.” The Fourth Turning – Strauss & Howe – 1997

The core elements of this Crisis have been discernible for decades. The accumulation of private and public debt; the civic, moral, and intellectual decay of our society; the growing power of the corrupt corporate fascist surveillance state; growing wealth inequality created by crony capitalist skullduggery; the peak in cheap easily accessible oil; and global disorder caused by overpopulation, scarce resources, religious zealotry, and war; combine in a toxic brew of unimaginable pain, anguish and tragedy. The Crisis began in September 2008 and the sole purpose of the deceitful establishment has been to avert a catastrophe that is destined to extinguish the wealth, power and control they’ve treacherously procured over the last few decades.

The appearance of stability is illusory, as the civic fabric of the country continues to tear asunder. Record high stock markets do not trickle down. The debt engineered stock market gains enrich the .1% at the expense of the working class. Bernanke’s “wealth effect” theory is a charade. He has backed the country into a corner with no escape for the prisoners of his QE prison (he’ll escape to collect his Wall Street paycheck in January). He knows that without the combined $300 billion per month being pumped into the veins of zombie U.S., European and Japanese insolvent zombie banks by central bankers, the worldwide financial system will implode. He blathers on about tapering while awaiting the next government manufactured crisis to give him an excuse to continue or increase his money printing exercise. Control P is the only key on Bennie’s laptop. To think dropping trillions of dollars into the laps of Wall Street will somehow stimulate Main Street is beyond laughable. Some ideas are so ridiculous that only intellectuals and academics could possibly believe them.

The masters of propaganda seem baffled that their standard operating procedures are not generating the expected response from the serfs. They have failed to take into account the generational mood changes that occur during Fourth Turnings. Propaganda loses its effectiveness in proportion to the pain and distress being experienced by the citizenry. Goebbels’ propaganda enthused and motivated the German people during the 1930s as Hitler re-armed, scrapped the Versailles Treaty and took over countries, as well as when he was conquering Poland and France in the early phase of World War II. Propaganda didn’t work so well when the U.S. Air Force was obliterating Dresden, Hitler was hunkered down in his bunker about to put a bullet in his skull, and the Russians were on the outskirts of a burning Berlin. Propaganda works when the people want to believe the falsehoods. When the cold harsh reality slaps them in the face, propaganda no longer works.

    Propaganda Working Well                   Propaganda Not Working So Well

  

The American Empire propaganda machine continues to gyrate but the gears are getting clogged with the gunk of mistruths revealed. Even the willfully ignorant masses are beginning to realize they have been screwed by those running the show. After five years of debt bankrolled “no Wall Street banker left behind solutions” and Keynesian crony capitalist handouts, real median household income is 8% lower, there are 5 million less full-time jobs, there are 19 million more Americans on food stamps, gasoline prices hover near all-time high levels, health insurance premiums are skyrocketing, local, state and Federal taxes relentlessly rise, and the national debt has gone hyperbolic – up by $6.7 trillion in five years.

This 67% increase is more debt than the country accumulated in the 214 years from its founding in 1789 through 2003. The $6.7 trillion of new debt, along with Bernanke printing almost $3 trillion of new fiat dollars and handed to his puppet masters on Wall Street, have generated a pitiful $1.8 trillion of GDP growth. We know Main Street has not benefitted from this insane expansion of our empire of debt. But, someone benefitted.

Shockingly, those who profited from the actions of Bernanke, Obama, Congress, and the U.S. Treasury are the very same malevolent predators that created the financial disaster and prompted the emergency response in the first place. QE to infinity has not been a failure. It has done exactly what it was designed to do. In September 2008 every major Wall Street bank was insolvent. Orderly bankruptcy under existing law was the solution. The richest, most powerful men in the world would have seen vast amounts of their illicitly acquired wealth vaporized. Hundreds of billions in bad debt would have been written off, with no lasting impact on the average American. A brief violent depression would have ensued, but with the bad debt purged from the system and only prudent sensible bankers left, the economy would have rapidly recovered. Instead, a small cadre of financial elite hatched a plan to preserve their ill-gotten gains through accounting fraud, and manipulation of monetary and fiscal policy.

Bernanke and Paulson compelled the pocket protector wearing accounting weenies at the FASB to allow Wall Street banks to mark their assets to make believe rather than market. Bernanke then proceeded to buy up toxic assets from the Wall Street banks, providing a never ending flow of QE heroin injected directly into the veins of Wall Street bankers, and paying .25% on all deposits made by the Wall Street banks. Bernanke didn’t do this so the banks could make loans to John and Susie Q Public and small time entrepreneurs with great business ideas. He did it so Wall Street could repair their insolvent balance sheets on the backs of American taxpayers. The $2 trillion of excess reserves parked at the Federal Reserve by Wall Street banks is “earning” $5 billion of risk free profits for the Too Big to Trust autocrats. Wall Street has generated billions of additional accounting entry “profits” by pretending their future losses on worthless loans will be minimal. Lastly, the “Bernanke Put” allows the Wall Street traders to use their HFT supercomputers and advanced notice of economic data to front run the muppets and syphon billions of risk free trading profits from the real economy. The chart below reveals all you need to know about the true purpose of Bernanke’s QEfinity.

You’d have to be blind, deaf and dumb to not realize who Bernanke is really working for. But it seems the majority of people in this country don’t care, don’t understand or don’t want to know the truth, as long as the ATM keeps spitting out twenty dollar bills, there are still Cool Ranch Doritos on the shelf at the Piggly Wiggly, and the EBT card gets recharged on the first of the month.

“The mischief springs from the power which the monied interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges which they have succeeded in obtaining…and unless you become more watchful in your states and check this spirit of monopoly and thirst for exclusive privileges you will in the end find that the most important powers of government have been given or bartered away….” ― Andrew Jackson

Parasite on a Parasite on a Parasite

  

“This is by no means a new idea, nor is it the least bit radical; it is deeply conservative and highly traditional. It was Aristotle who first defined the economy as an exchange of goods and services for money, commerce as a parasite on the economy (where those who create nothing extract a share by trading) and finance a parasite on commerce (which extracts a share by switching money from hand to hand – a parasite on a parasite). A typical US politician, such as the president, who counts financial companies such as Goldman Sachs among his top campaign donors, could be characterized as a parasite on a parasite on a parasite – a worm infesting the gut of a tick that is sucking blood from a vampire bat, if you like.” – Dimitri Orlov – The Five Stages of Collapse

The bastardized form of capitalism that passes for our economic system today is based upon a parasitic relationship between Too Big To Trust Wall Street banks, powerful mega-corporations, connected wealthy cronies, and bloodsucking politicians, with the American people as the debt bloated host. The parasites have put the host on life support in critical condition. It took forty years, since Nixon unleashed immoral bankers and devious politicians by decoupling our currency from gold, but the financialization and gutting of America through the false promises of globalization is almost complete. The quaint days of the 1950s and 1960s, when the country was supported by an economy that produced goods, invested in productive assets and citizens who saved money to buy things they desired, are long gone. The insane concepts espoused in the mid-1960s that created our current day welfare/warfare state required Americans to stop using their brains and start using their credit cards. The degenerate Wall Street banking cabal were thrilled to oblige by providing vast sums of debt to the government and the masses. Constant  war, uncontrolled materialism, and an ever expanding welfare state is the triple crown of profits for unscrupulous bankers and corporate CEOs. Once the inconveniant anchor of gold was cut loose by Nixon, the bankers and politicians were free to guide the U.S. Titanic towards its ultimate destination.

The decades long shift from a productive manufacturing society based on savings and investing in productive capital assets to a predatory consumption society based on borrowing and spending has enriched the Wall Street financial elite and destroyed the working middle class. An economy where 25% of its GDP was produced by manufacturing products allowed all boats to rise. A hard working middle class family had a chance to move up the social ladder. An economy where more than 20% of its GDP is dependent upon parasitical financial intermediaries that produce nothing and add no value creates the extreme wealth inequality we have in our society today. Only the yachts rise in such a society. The shift has been slow and methodical and we’ve crossed the point of no return. The propaganda being spewed by the mainstream corporate media and the connected crony capitalists like Jeffrey Immelt about a U.S. based manufacturing revival is designed to pacify the distracted masses. The pillaging by the FIRE sector will continue until the host is deceased.

The growth as a percentage of our GDP in business & professional services from 5% of GDP in 1970 to 12% today provides further evidence of a country in a downward spiral. The country wastes billions hiring “experts” (lawyers, accountants, consultants) to interpret the millions of pages of indecipherable laws, regulations and tax codes created by politicians used to control, monitor, tax and bilk the masses. The 3,300% increase in spending on healthcare and education since 1970 has created tens of millions of sickly functional illiterates. The corporate food conglomerates mass produce processed poison, Madison Avenue maggots peddle the poison to the masses through relentless Bernaysian propaganda marketing, creating nauseatingly obese human beings, and then the corporate healthcare conglomerates treat the dozens of diseases created by this insane process with their drugs, while corporate profits soar ever higher. We all know that superstar corporate CEOs like Jack Welch, Jamie Dimon, Angelo Mozillo, and Mark Zuckerberg deserve hundreds of millions in compensation for adding so much value to our everyday lives. How would we survive without a Best Buy credit card through GE Capital at 21% interest, or a JP Morgan created credit default swap sold to customers and then shorted, or a subprime negative amortization liar loan used to purchase a $750,000 McMansion, or having a place to post every inane thought we have so employers and the NSA can keep up to date on our status.

Corporate-Profits-GDP-081613

The corpulent populace have been so dumbed down by the public educational system run by social engineers and union teachers, along with the 24/7 corporate media propaganda inundating them since childhood, they are content to stare into their boob tubes, play with their iGadgets, or read what a friend of a distant relative ate for breakfast, on Facebook. The government provides enough welfare handouts to keep the increasingly larger lower classes from rioting by borrowing $1 trillion per year from future unborn generations. When the middle class shows signs of discontent regarding their declining wages and lack of jobs, the government and the military industrial complex use the bogeyman of impending terror threats and evil foreign dictators to wage undeclared wars and distract the willfully ignorant masses. Plus, there are always fantasy football leagues, paying $300 to take your family to watch drug enhanced millionaire baseball players not run out a ground ball at a $1 billion taxpayer financed stadium, shopping at a suburban ghost mall with one of your nine credit cards to dull the pain of a meaningless pathetic life, or watch eight year old Honey Boo Boo dress like whore and parade before adult judges on the Discovery Channel. Our choice to ignore the basic mathematics of our lives has resulted in creating a nation of sub-humans wandering through life like zombies in a bad horror movie.

“Anyone who cannot cope with mathematics is not fully human. At best, he is a tolerable subhuman who has learned to wear his shoes, bathe, and not make messes in the house.” ― Robert A. Heinlein

And we owe it all to the bankers and politicians that have procured undue influence over the political, economic, and financial mechanisms that control the country. The 2008 financial collapse, systematically created by the pathologically egomaniacal financial elite who are programmed to thrust their vampire squid blood funnels into every potential pot of untapped wealth in the world, should have led the American people to tear down their criminal enterprise and throw the treacherous predators into prison. Instead, the fearful masses begged the Wall Street bankers and the pandering politician flunkies in Washington D.C. to steal more of their money. The bankers won again.

“They have been able to pay off politicians with political campaign funds and have been granted informal and unspoken yet complete immunity from prosecution, setting the scene for even bigger confiscations of investor capital. With the risk of legal repercussions so small and the temptation to steal so large, why would any of them not take advantage? What do they have to do to stop people from entrusting them with their savings? Put up neon signs that say, “We steal your money”?” – Dimitri Orlov – The Five Stages of Collapse

This capturing of unwarranted power by an unelected group of rich powerful men through deceitful means has left the country at the mercy of these psychopaths as their increasingly desperate measures insure the ultimate destruction of wealth across the planet. There are four central bankers (U.S., EU, Japan, China) who are the front men for the oligarchs. They are empowered with control over 70% of all the money on the planet. Do you think they have your best interests at heart? The financial crisis was caused by excessive levels of debt, created to benefit the issuers of the debt and the politicians who used the debt to promise voters more goodies than they could ever possibly deliver. Those politicians would be long gone before the IOUs came due, but the promises got them re-elected and made them rich. The “solutions” put forth by our owners since 2008 to solve our debt crisis have been to create debt at an even more rapid pace. Total credit market debt in the U.S. has surged by $6 trillion since 2007 to $57 trillion, 345% of GDP (it was 150% in 1970). The entire world is awash in un-payable levels of debt as reckless central bankers and gutless politicians know only one response to every crisis they cause – PRINT!!!

The decline in U.S. household debt has been solely due to write-offs, as the bad debt was shifted from reckless households and gluttonous bankers to the government books, where those who prudently abstained from the debt orgy are now on the hook for trillions of newly created unfunded obligations. Despite a moribund economy, with the lowest percentage of the population employed since 1983, consumer spending tanking, interest rates rising, gas prices near record highs, and poverty levels at all-time highs, corporate profits are off the charts. It seems the “solutions” implemented by the Ivy League MBA financial elite bankers and bureaucrats have had the desired result – enrichment of the criminal class who financialized the nation. The establishment and their media propaganda machine have somehow convinced a vast swath of Americans to believe that record profits accruing to the largest corporations in the world and stock market gains accruing to the 1% are beneficial to their lives. It’s a testament to the power of propaganda that people can be convinced to cheer on their own downfall as they are dehumanized and enslaved by the plantation owners who run this country.

“Crime follows money like a shadow. The more money there is within a society, the greater are its social inequalities. Financialization dehumanizes human relationships by reducing them to a question of numbers printed on pieces of paper, and a blind calculus for manipulating these numbers mechanically; those who take part in this abstract dance of numbers dehumanizes others and, in turn, lose their own humanity and can go on to perform other dehumanizing acts. Money is, in short, a socially toxic substance.” – Dimitri Orlov – The Five Stages of Collapse

There is no more revealing statistic than real median household income to gauge the winners and losers from the financialization and dehumanization of America. The real median household income of $52,100 is still 8% below the early 2008 level of $56,600. It is still 5% lower than it was in 1999, before the Federal Reserve/Wall Street bubble blowing wealth destruction machine really got going. In fact, real median household income has only risen 9% in the last 35 years. Prior to that, most families could live comfortably with only one spouse working. I’d be remiss if I didn’t point out that these calculations are based on the fraudulently manipulated CPI figures which are understated by at least 3% per year. Using a true measure of inflation would reveal median household income to be lower today than it was in the mid-1960s. The bottom 80% have seen a decline in their standard of living since the mid-1960s as inflation has robbed them of purchasing power and the financial elite have skimmed the cream off the top of our economic system. The economic gains have accrued to the top 5%, with astronomical gains being amassed by the .1% ruling elite, who have rigged the game in their favor through laws written by their lobbyists, regulatory shenanigans, tax code manipulation, and buying off politicians. Thank you Bob Rubin, Larry Summers, and Phil Gramm for repealing Glass Steagall and stopping any regulation of financial derivatives. Where would the country be without those two courageous acts on your part?

Those in control of the system have succeeded beyond their wildest dreams as 72% of all the wealth in the US is held in the hands of 5% of the population, with 42% of this in the hands of the top 1%. The top 1% now “earn” over 20% of all the income in the U.S., a level exceeded only once before in the 1920s prior to the Great Crash of 1929 and ensuing Depression. During the heyday of middle class upward mobility, from 1950 through 1970, the top 1% earned 10% of all income. Today, the top 1% is dominated by debt peddling bankers creating derivatives of mass destruction, hedge fund egomaniacs in collusion with bankers to syphon capital away from productive ventures, mega-corporation job destroying executives, entertainment personalities, and shyster lawyers preying on the weak and feeble minded. Our insane society heaps accolades on these rich and famous narcissists, who add no value, produce nothing, create economic havoc, and drain the lifeblood from the dying carcass of a once great nation. The nearly extinct middle class owes their fate to the malevolent men that turned the country into a gambling casino of debt, derivatives, delusion and dreams of jackpots that will never materialize. The bankers and their cronies run the casino and the house always wins, as the chart below confirms.

wealth-change-epi

It is mind boggling that we have allowed ourselves to be brainwashed by the ruling class about the tremendous benefits of globalization, efficiency, productivity, and profitability. When academia, the mass media, and government leaders use their power and influence to convince the masses that ever higher mega-corporation profits benefit the well-being of the country, you end up where we are today. Globalization was nothing more than a scheme by our biggest corporations to use labor arbitrage as a way to increase profits. As American jobs were disappeared overseas to countries that allow slave labor conditions and wages, median household income declined.

The banking cabal stepped to the plate and convinced the increasingly poorer middle class to replace that lost income with easily accessible debt. Just whip out that credit card and use your house as an ATM and you still give the appearance of increasing wealth. You might be in debt up to your eyeballs but, by God, at least the neighbors would think you were doing great. Until the foreclosure sign went up in front of your house in 2009. The marriage of corporations outsourcing American jobs to China with consumer debt peddled by the predator banks was a match made in heaven until the country ran out of decent paying jobs, one in six people was on food stamps, and the average middle class family was drowning in debt. People are beginning to wake up to the fact that corporate efficiency and productivity means firing American workers, cutting benefits, and bigger bonuses for corporate executives as their stock price is boosted by the announcement of more layoffs. The country has been gutted by the predator class in their unquenchable thirst for more. Human nature never changes. Greed, desire, avarice and stupidity will always rear their heads, leading to predictable outcomes.

“Indeed, it had not – not when the nation’s most sophisticated corporate financiers and their accountants were constantly at work finding new instruments of deception barely within the law; not when supposedly cool-headed fund managers had become fanatical votaries at the altar of instant performance; not when brokers’ devotion to their customers interest was constantly being compromised by private professional deals or the pressure to produce commissions; and not when the style-setting leaders of professional investing were plunging as greedily and recklessly as any amateur.” – John Brooks

The psychopaths controlling this country have fashioned untenable financial conditions by further weakening an already structurally deficient economic structure that will result in an epic flood of financial destruction destined to destroy the lives of millions in the U.S. and around the globe. Those who put their faith in financialization and interconnected globalization will reap what they have sowed. We will all feast at a banquet of consequences. Encouraging central bankers across the world to print trillions of fiat currency out of thin air as the solution to our debt problem is the ultimate in idiocracy. The unsustainability of this scheme should be evident to even an Ivy League economist. But the dimwitted government apparatchiks, overeducated economists, greedy corporate executives, vacuous media talking heads, and intellectually dishonest journalists cheer on Ben Bernanke and his central banker brethren.

When you see a Bloomberg bimbo interviewing an Ivy League Wall Street economist about the tremendous merits of QE to infinity, you have a millionaire interviewing a multi-millionaire, with both working for corporations owned by billionaires. Their jobs depend upon the sustenance and further enrichment of the establishment. Therefore, they will lie, obfuscate and mislead their audience about the criminality of their bosses and the true consequences of these crimes against humanity. The existing hierarchy will not willingly surrender their control, power and illegitimately acquired wealth. Only the process of economic collapse, war and revolution will end their reign of terror.

We’ve seen it all before. The cycles of human history have provided us with centuries of proof that a few evil men can gain control over a civilization and procure an inordinate amount of wealth and power before ultimately relinquishing it due to their myopic pathological desire to acquire more. Powerful wealthy narcissists are never satisfied with what they have. Their arrogance and hubris will always be their downfall. Their foolish belief in their own omniscience reveals their true ignorance. Their enormous egos and confidence in the linearity of history blind them to their impending demise. Time is no longer on their side. A reckoning will happen within the next decade. Their gated communities and penthouse doormen will not keep them safe.

The American people cannot shirk their responsibility for this ongoing tragedy. The evil men could only pull off this bank heist with the silent consent of the governed. And that is exactly what has happened. The American people have been gradually persuaded through propaganda and fear to willingly give up freedom, liberty and self-responsibility for safety, security and government provided succor. Over the last forty years the Americans people have allowed themselves to be enslaved in debt by bankers, corporations and politicians, who realized all the riches, while binding the citizens in chains made of credit cards and mortgages. Now that the system has reached its breaking point and the further issuance of debt no longer generates the appearance of growth, the ruling class have resorted to more authoritarian measures, all done in the name of protecting us from phantom terrorists and evil dictators. It’s for the children.

Decisions about our economy are made in secret meetings by unelected officials and with sparse details announced with great fanfare by the corporate media. The President, with the full support of the military industrial complex, chooses which dictators are evil and which are good, with each being interchangeable depending upon the circumstances. The iron fist of American democracy attacks countries at will, without a declaration of war as mandated by the U.S. Constitution. Twenty five hundred page laws, indecipherable reams of regulations, and 60,000 pages of tax code are rammed down the throats of Americans without the benefit of even a debate. Each crisis caused by the previous government solution is met with more laws and regulations, designed and written by the very entities they were supposed to control. The farce of party politics is used to give people the appearance of choice, when there is not an iota of policy difference when the opposing party assumes power.

The people are told every situation is too complicated for them to understand and they should let the “experts” solve the problems. Every authoritarian measure used to control dissent among those capable of thinking is done in the name of national security. Edward Snowden is declared a traitor for revealing the traitorous actions of our own government, and the people silently consent. The head of the NSA is caught lying to Congress, and no one cares. The Department of Homeland Security locks down one of the biggest cities in America looking for a teenager and the people cower and beg Big Brother for more protection. The NSA and other secretive government agencies treat the 4th Amendment like toilet paper, and the people feebly respond by breathlessly texting, twittering and facebooking about Anthony Weiner’s cock. The U.S. military desensitizes the masses by conducting live fire exercises in American cities, and the people just change the channel to Bridezillas or I Didn’t Know I Was Pregnant.

Each new economic “surprise”; each new foreign “threat”; each new government “solution” is met with secrecy, spin, and no avenue for the people to impact the decisions made by our owners. The people no longer matter. They can’t change the course of the country through legal means or the ballot box because the system has been captured. It has happened before. The American people are under the mistaken impression we are free. That boat has sailed. Our economic, financial and political systems have been usurped by malicious men posing as gangsters in this saga. We have allowed this to happen. We mistakenly put our trust in bankers, academics and politicians and will suffer the consequences of our choices, just as the German people experienced during the last Fourth Turning.

“What happened here was the gradual habituation of the people, little by little, to being governed by surprise; to receiving decisions deliberated in secret; to believing that the situation was so complicated that the government had to act on information which the people could not understand, or so dangerous that, even if the people could not understand it, it could not be released because of national security.

Each step was so small, so inconsequential, so well explained or, on occasion, ‘regretted,’ that unless one understood what the whole thing was in principle, what all these ‘little measures’… must someday lead to, one no more saw it developing from day to day than a farmer in his field sees the corn growing…. Each act… is worse than the last, but only a little worse. You wait for the next and the next. You wait for one great shocking occasion, thinking that others, when such a shock comes, will join you in resisting somehow.” – Milton Mayer, They Thought They Were Free, The Germans 1933-45

In the fourth and final installment of this seemingly never ending treatise on a world gone insane, I’ll address how the disintigration of trust will ultimately lead to a collapse of the worldwide Ponzi scheme and how the collapse could lead to a rebirth of a society built upon family, community, cooperation, local commerce, compassion, freedom and liberty. I can dream, can’t I?

Knarf plays the Doomer Blues

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MbS, the personification of the age-old pre-revolutionary scenario in which an expiring regime attem [...]

Daily Doom Photo

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Sustainability

  • Peak Surfer
  • SUN
  • Transition Voice

Soft Paths to Zero"While reducing emissions should be a priority, it is morally questionable to focus on relative [...]

Last of the Naked Apes"That we are still cutting down forests and wrecking soils is what makes us the last of our kin [...]

Ihere spam is Igbo for “I love you”"Sitting there in the back, in plain sight, draped in his ceremonial Babar garb, squeezing into [...]

Pretty cool, right?"There's a magic machine that sucks carbon dioxide out of the air, costs very little, and [...]

A Tyranny of Time"“We will move to a low-carbon world because nature will force us, or because policy will guide [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

What extinction crisis? Believe it or not, there are still climate science deniers out there. And th [...]

My new book, Abolish Oil Now, will talk about why the climate movement has failed and what we can do [...]

A new climate protest movement out of the UK has taken Europe by storm and made governments sit down [...]

The success of Apollo 11 flipped the American public from skeptics to fans. The climate movement nee [...]

Today's movement to abolish fossil fuels can learn from two different paths that the British an [...]

Top Commentariats

  • Our Finite World
  • Economic Undertow

“If ever there was a time to give helicopter money a whirl then this is it.” then these are desperat [...]

My wife and I are in a pickle. We live in CA, and this latest outage was the 2nd this year. When the [...]

I bet a lot of people could use some super low interest helicopter, long term loan money to pay off [...]

Yes, us "Old Timers", more than likely will be gone in the spirit world, unless CC causes [...]

Hi Steve. I recently found what I believe is a little gem, and I'm quite confident you'd a [...]

The Federal Reserve is thinking about capping yields? I don't know how long TPTB can keep this [...]

As some one who has spent years trying to figure out what the limits to growth are. let me say that [...]

Peak oil definitely happened for gods sake. Just because it isn't mad max right now is no indic [...]

@Volvo - KMO says he made some life choices he regrets. Not sure what they were. And I don't th [...]

RE Economics

Going Cashless

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Simplifying the Final Countdown

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Bond Market Collapse and the Banning of Cash

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Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

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Kurrency Kollapse: To Print or Not To Print?

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SWISSIE CAPITULATION!

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Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

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Merry Doomy Christmas

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Peak Customers: The Final Liquidation Sale

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Collapse Fiction

Useful Links

Technical Journals

Anticipating seasonal climate anomalies is essential for defining short-term adaptation measures. To [...]

The population that lives in cities has surpassed the one that lives in the countryside. Cities are [...]

Concerns exists regarding natural disasters, but what about the resulting power outages? This study [...]

A large population relies on water input to the Indus basin, yet basinwide precipitation amounts and [...]